(This post originally appeared on The Guardian)
Earlier this week a new report from the National Association for Business Economics said that the 2017 Tax Reform Act had no major impact on how US businesses invested or hired.
The report concluded that the number of businesses who said they do not plan to accelerate their investments rose to 84% from 81% a quarter earlier. In fact, spending plans from businesses fell to their lowest levels since July 2017. Employment growth did improve, but only modestly, with just a third of the respondents saying their employment at their firms grew this quarter compared to 31% the previous quarter.
The good news is that the most of the survey’s 106 business economists who belong to the association and who responded to the survey do not expect a recession within the next 12 months. Nearly two-thirds – 64% – of respondents expect expansion. But the damage was done and opponents of the bill pounced.
“So far, the investment response has been modest and underwhelming,” Owen Zidar, an economics and public affairs professor at Princeton, told CNN. “The idea there would be an enormous boom was pretty optimistic.”
It was not great news for supporters of the bill. But hold on … Read More…