Da Ma: The "big and beautiful" law may not necessarily mean big growth.

Morgan Stanley strategist Michael Zezas and his colleagues wrote that the "Beautiful Big Bill" that Republicans in Congress are working hard to pass at the request of President Trump will increase the deficit, but may not have such a large impact on promoting economic growth. Nominal expansionary provisions, such as tax cuts, may not have such a clear effect, as they largely just extend current policies. On the other hand, spending cuts in the form of cutting medical subsidies in the bill may have a direct negative impact on economic growth. Therefore, Morgan Stanley expects the bill to create fiscal drag on GDP in the medium to long term. Modifications to the legislation by the Senate may push the bill towards a direction that is more favorable to growth.