The Trump tax cuts, like the Bush tax cuts before them, were supposed to lead to an explosion of investment and growth. Like the Bush tax cuts, they did no such thing; they resulted in more inequality, an increase in affluent consumer spending, massive investment in government securities to finance the higher deficit (i.e., “right-wing recycling”), and asset inflation. The GOP will, however, insist on more tax cuts the next time it wins a national election. It refuses to learn from history for reasons of self-interest.
When progressives demanded an increase in the minimum wage to $15, I argued that it would lead to lower business service levels and inflation, because business owners would protect their profits and pass the costs to consumers. When the pandemic created a labor shortage and effectively increased the minimum wage, that’s exactly what happened. And yet, today, some progressives are arguing for a $20 minimum wage to help workers deal with. . . you guessed it . . . the inflation that was partially caused by rising wages.
It seems that the right is not alone in its refusal to learn from the past.