Who’d a thunk it? The Donald’s fiscal plan doesn’t work. March 7th, 2016 at 8:44 am Over at WaPo. Sources: OMB, CBO, TPC Share the post "Who’d a thunk it? The Donald’s fiscal plan doesn’t work." FacebookTwitterShare… Categories: Fiscal Policy, New Posts | 3 Comments »
What can I say? I saw the graph and it made me laugh!
Then I read your column and it made me weep.
You say “given that impossible things can’t ocurr, ” which you could have rephased as this kind of budgeting will work out when Trump is President. So oddly enough it appears you are saying the same thing as The Donald, but perhaps with a slightly different meaning 😉
Ok, let me translate Donald Trumponomics for you. He will cut taxes for everyone, but most of the benefits will accrue to the very rich. He will cut social welfare spending and raise defense spending. The deficit will rise. Democrats in Congress and possibly a few very secure Republicans from purple states will stop the conservative majority from doing their worst. Republicans afraid of Tea Party challenges will secretly breath a sigh of relief. The deficit will rise with no obvious consequence just as it would if the spending was used for infrastructure instead of yachts and private jets. Owing to the lessons partly learned and some moderate reforms, we may avoid another Iraq, or another financial meltdown. The tax cuts and defense hikes in store may be very inefficient, promote greater inequality, and allow further deterioration of our quality of life (for most people), but it will boost the economy nonetheless. Trump could have a very successful presidency since Republicans will freely spend on tax breaks, breaking the gridlock, and finally put in place a renewed somewhat Keynesian deficit financed (privately spent) stimulus, more commensurate with an estimated 10 to 20% output gap.