Ah...the historically disproven, yet historically consistent, Republican thinking rears its ugly head again....
The basic facts...and basic math....
The ever present realities...
Trump and the Rs want to CUT taxes...and INCREASE spending...that alone makes the deficit WORSE not better.
Assume the economy can do 2% better than it is currently (a lofty expectation...but let's go with it)....2% GDP increase amounts to roughly $400B a year...maybe a little more if we assume higher growth. If the government taxes 100% of that extra growth, it isn't enough to erase the deficit that we already have!
Now...understand that Medicare and Medicaid costs are ramping up due to aging Baby Boomers...our illustrious egomaniac isn't dealing with that...has made no mention of the real problems our budget faces (caring for an aging populace). Instead, in his infinite insanity, he wants to raise defense spending---when we already massively outspend everyone else. From the moment he opened his mouth, Trump's budget proposals have been doomed to fail. He will make the deficit worse. He will make the debt significantly worse. There is no other end result.
This is the same BS economic proposal that Mr. Reagan made...Mr. Reagan was wrong (deficits exploded under Reagan and his budgetary policies put us on the path to where we are today)...Mr. Bush (43) was wrong when he copied the same philosophy (and he left us woefully unprepared to fight the Great Recession).
http://www.reuters.com/article/us-usa-trump-spending-idUSKBN16718EPresident Donald Trump said he believes the extra $54 billion dollars he has proposed spending on the U.S. military will be offset by a stronger economy as well as cuts in other areas.
"I think the money is going to come from a revved up economy," Trump said in a Fox News interview broadcast on Tuesday, hours before he was to address a joint session of Congress.
"I mean you look at the kind of numbers we're doing, we were probably GDP of a little more than 1 percent and if I can get that up to 3 or maybe more, we have a whole different ball game. It's a whole different ball game."
The basic facts...and basic math....
- projections are for a $500B budget deficit for FY 2018.
- Total US economic output is roughly $19T
- 1% of $19T is $190B
The ever present realities...
Trump and the Rs want to CUT taxes...and INCREASE spending...that alone makes the deficit WORSE not better.
Assume the economy can do 2% better than it is currently (a lofty expectation...but let's go with it)....2% GDP increase amounts to roughly $400B a year...maybe a little more if we assume higher growth. If the government taxes 100% of that extra growth, it isn't enough to erase the deficit that we already have!
Now...understand that Medicare and Medicaid costs are ramping up due to aging Baby Boomers...our illustrious egomaniac isn't dealing with that...has made no mention of the real problems our budget faces (caring for an aging populace). Instead, in his infinite insanity, he wants to raise defense spending---when we already massively outspend everyone else. From the moment he opened his mouth, Trump's budget proposals have been doomed to fail. He will make the deficit worse. He will make the debt significantly worse. There is no other end result.
This is the same BS economic proposal that Mr. Reagan made...Mr. Reagan was wrong (deficits exploded under Reagan and his budgetary policies put us on the path to where we are today)...Mr. Bush (43) was wrong when he copied the same philosophy (and he left us woefully unprepared to fight the Great Recession).