"In typical liberal fashion this article focuses more on attacking Musk and pointing out his hypocrisies", users on r/economics argue over president Musks economic policy

Source: https://www.reddit.com/r/Economics/comments/1iu0707/economist_warns_that_elon_musk_is_about_to_cause

HIGHLIGHTS

What a ridiculous assertion. That is why they call Economics the "Dismal" Science, these guys are almost always wrong. 1) there is no indication that 100s of thousands of jobs will be cut. 2) There is no private sector uncertainty. Everything Trump is doing is pro-economic growth. Lower taxes, fewer regulatory compliance costs and lower energy prices. In addition the DOGE cost savings will reduce the deficit and take inflation pressure off the economy. 3) Trump's extending the Tax Cuts is non-inflationary and pro-growth. Economic growth will also lower interest rates.

And your credentials to contradict economists and make such a statement comes from where exactly?

He isn’t contradicting economists. He’s contradicting economists from this article

“These guys are almost always wrong” Then proceeds to give a profound statement about what “really” works to stimulate an economy. Give me a break. I can find an outlier in any field no matter how absurd that will cater to a certain viewpoint. Milton Friedman and Arthur laffer are certainly more intelligent in economic theory than I am…but I’ll go with the consensus and real world examples that have proven them incorrect more times than not

The things he listed are proven to be good for the economy so I’m not sure what you’re on about it ?

Sometimes you need to accept short term pain for long term gains. As for this deep, deep recession, it's just propaganda to make citizens think the worst. Of course there will be lost gdp from fired employees but they'll be hired in the private sector eventually and if not, it kind of makes you wonder what they were doing in the first place

Regulations are written in blood, but we all have a collectively short memory. Things will cycle back around but it will take a long time and a lot of blood.

Sorry, I'm not following your comment. We have a bloated and inefficient govt. It makes sense to cut fat just like what happens in the private sector. I've been impacted myself so I can empathize with the pain it'll cause the affected employees. That being said, it's a necessary move.

lmao this guy buys the capitalist BS propaganda that the private sector is somehow not "bloated and inefficient."

When I worked for one of the largest banks in the US, my boss had to go through a chain of 10 people/various departments so he could order a coffee table for our lobby. He wasted so much time on forms, emails, and other bs that he just used his own money to buy one from Amazon.

Also they were going to fly someone from another state to color match our other furniture lol

I think what Trump and Musk are doing is brave, dangerous, bad short-term, good long-term. Whatever they do, they won't cause a recession, but trigger it. Recession is being held back by a hair. They didn't create it, it was being created for the past years/decades. There is no good way out of it, it is going to happen sooner or later. They aren't only letting some people go but also preventing throwing money outside of the country. These people will find new jobs, the new money will be spent inside the US. Let's get some popcorn and watch. Nobody knows what will actually happen, the economy is very complex and they are poking it from all sides, which is impossible to predict. It's chaotic.

If you increase inflation while also increasing unemployment and pissing off most of the world that buys your products and scare businesses away from large capex project because they have no clue what the landscape will look like in 6 months let alone 4 years then the natural outcome is a Trump-made recession. It really is not that complicated.

Its always "economists" or "experts" yet noone is actually putting their name up so when they get proven wrong they get consequences for lying/being unknowledgeable or at least reputation destroyed. For years now "experts this" "economists that" and yet, basic theory and time proves them wrong over and over again

The economist never cites authors.

Nobody ever does. Like i said, its always "experts" and "economists" saying things that wouldnt even pass in econ 101. How can i believe you if you go against theory, reality and you decide to be anonymous even tho apparently youre an expert after being proven wrong time and time again. It would be madness from my part, but casuals still dont see pattern i guess

Damn, just going with willful ignorance huh?

What exactly? I wanna know details where youre mistaken so i can correct it

10 people have already told you that the economist is clearly named in the article yet you doubled down on “unnamed experts” protecting themselves from backlash. You’ve made up a scenario and are treating it as fact despite being completely wrong. Why do you think tens of thousands of people losing their jobs won’t cause a recession?

If making necessary cuts to the federal budget to prevent currency collapse breaks a countries economy, the countries economy was already broken.

If they are thinking of a currency collapse why are they handing out another massive tax cut and raising the debt ceiling by 4.5 trillion?

I'm not sure they're cutting to prevent currency collapse, but it's what will happen if we don't get our budget under control. Debt spirals are not fun. As Americans, our entitlement prevents us from thinking about the consequences in a real way.

How do we get the debt problem solved by decreasing taxes and raising the debt limit by $4 trillion?

balancing the budget, and increasing income in other areas. You do believe that our current fiscal trajectory with a $2 trillion deficit each year is unsustainable, correct?

I was wondering when someone was going to explain how laying off and firing thousands upon thousands of people is good for the economy. I’m waiting….

Do nothing government bureaucrats drag the economy down. Freeing up labor to do more productive things is good for the economy.

So state parks employees are useless and provide no service? 6800 fired useless IRS employees that do absolutely nothing? Scientists that provide research on health issues are completely worthless and do nothing?

I didn't say nobody did anything. you're putting words in my mouth. I'm saying there are a lot of people who are fulfilling useless bureaucratic roles that aren't needed. Its the same in business where you cut and analyses until you can run lean and efficient.

You aren't smart or qualified enough to make that distinction. Fact is, you just believe whatever FOX news tells you to believe.