Trump: the golden wrecking ball
Sarah Palin once lovingly called Trump “the Golden Wrecking Ball”. He is on his way to being that to the country.
Trump and his mob want to give the better off Americans “the biggest tax cut in American history”. Free stuff for the wealthy that is not so free as it is going to be borrowed money to be added to a national debt of about $20 trillion (give or take a few trillion bucks). We are only paying for $4 for every $5 we spend now. How close are we already to the breaking point? A tax cut of any kind is lunacy.
Even the corporate tax cuts are unrealistic. US corporate tax rates are high, but the loopholes are so big some don’t even pay taxes. Instead of investments that produce US jobs, we will probably see more outsourcing and stock buy backs to enhance the equity per share of the rich who own almost all of the stock. Corporations invest for profit not less taxes or American jobs.
Republicans are tax cut nuts. They all but ruined the state of Kansas in the last 5 years with income tax cuts for the better off. All that trickled down to the regular people were cuts in serves and education. Kansas eventually threw out enough zealots to change course. The damage is still being repaired. It may never be fully.
Unemployment is very low. Economic growth is very strong. Greater stimulation will probably overheat the economy with inflation and higher interest rates. With the spending accelerator to the floor, the Fed will probably hit the brakes in some way. A dive into recession with runaway deficits is a real danger.
None of the projections that predict a $1.5 trillion increase in national debt in the next ten years for the Republican tax cuts factor in a recession. They have a nasty habit of occurring in ten years or less. Is it sensible to forecast clear skies for 10 years?
Trump and his mob could turn out to be a real wrecking ball. They could turn the whole country into a giant Kansas or worse with a recession and exploding national debt increase far bigger than $1.5 trillion.
For more background on the Republican economic nonsense, click.