President Trump in Action Put Washington in Cardiac Arrest
Tuesday the Trump Rally extended and the S&P 500 finished at +14.87 at 2280.07 and the NAS Comp at +48.01 at 5600.95 all time highs.
All of Washington DC is in in Cardiac Arrest over news reports that President Donald Trump is planning a budget featuring $10-T in cuts over the next 10 years.
Keeping good thoughts that this comes to pass as the US has been spending at least $1-T annually for 10 yrs+ that it does not have.
The national debt will soon exceed $20-T, and everyone in Washington DC is in denial about this growing cancer when they should be ordering extreme therapies before it kills our Republic.
$10-T is a lot of money.
It’s roughly equal to the entire amount of debt that was accumulated by Barack Hussein Obama in 8 years.
The Featherbedders say that cuts of this size would have devastating effects on social programs and vital federal services.
Even with this overdue downsizing, the federal government would still grow in size over the next decade. It just would not grow nearly as quickly as it is projected to if nothing at all is done.
Here are the parameters we are talking about.
1st, over the next decade the United States government is expected to spend close to $50-B, President Trump would cut 1 in 5 USDs of expected spending.
2nd, the $10-T would be in gross spending cuts. Over this same frame, President Trump wants to add as much as $1-T in infrastructure spending, and there is talk of more than $1-T in added defense spending. Senator John McCain (R-AZ) recently called for $500-B in added defense spending in President Trump’s 1st term alone.
The President is also suggesting 1 of the biggest tax cuts in history, with tax rate reductions for large and small businesses and for families.
This is expected to reduce revenues by $2-4-T.
So, about 50% the spending cuts are required simply to offset the tax cuts and new spending. The rest of the government downsizing is to get back to a balanced budget, 1 of President Trump’s campaign promises.
President Donald Trump is a negotiator.
Expect him to call for these big cuts as his opening fiscal move alering Congress that there really is a new fiscal Boss in town.
Notably, last year the official federal auditors at the Government Accountability Office (GAO) reported more than $150-B a year in fraudulent and/or erroneous entitlement spending through Social Security, Medicare, Medicaid, food stamps and other benefit programs.
No one ever does anything to reduce the rampant cheating, this fraud rate of more than 10%. These are the kinds of savings President Trump should make a priority.
What is most encouraging about this policy proposal is that it marks a welcome U-turn in economic philosophy from Barack Hussein Obama to Donald J. Trump.
Mr. Obama’s economists believed that government spending and debt were a “stimulus” to the economy, the more the better. It was a tooth-fairy philosophy that was put to the test and delivered the worst economic recovery in 75 years. Wages did not budge and, in fact, when adjusted for inflation, wages fell for many workers.
We learned once again, that government spending does not stimulate growth, it retards it. Just ask Japan or Venezuela.
What President Trump is really proposing is a $10-T stimulus to the private economy, and it is about time.
By Stephen Moore
Paul Ebeling, Editor
Editor’s Note: Stephen Moore is a distinguished visiting fellow at The Heritage Foundation, economics contributor to FreedomWorks and author of “Who’s the Fairest of Them All?” To find out more about Stephen Moore and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate at www.creators.com.
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