@isaiah4031 In the optimistic scenario, if interest rates return to the low ones of the last decade (not pandemic low, but 2018 low), and if corporate taxes don't go up, then they should stagnate. But stagnating profits implies a falling stock market, because higher anticipated growth is priced into stocks.
But in the pessimistic scenario that Smolyansky favors, there was secondary growth from feedback: ie, the falling low rates and taxes didn't just let corporations keep more of their EBIT (boosting apparent growth via temporary windfall) but they also made EBIT grow more than it would have. So profits might fall.
But 'fall' and 'stagnate' are all relative to the baseline 2% GDP growth rate.
But in the pessimistic scenario that Smolyansky favors, there was secondary growth from feedback: ie, the falling low rates and taxes didn't just let corporations keep more of their EBIT (boosting apparent growth via temporary windfall) but they also made EBIT grow more than it would have. So profits might fall.
But 'fall' and 'stagnate' are all relative to the baseline 2% GDP growth rate.