Trade Deficits are excess of buying from other countries than US sells. Debt is unpaid borrowed funds, carried by federal government. Candidate Trump promised to reduce both trade deficits and debt. But trade deficits have increased to $891.2 Billion, largest in the nation’s 243 year history. Economic research shows that Trump’s tariffs are damaging the U.S. economy, in part due to a scattershot approach that is failing. Example is soybeans sales have declined greatly, purchasing countries are making deals with other countries. Trump’s tax cuts and boom in government spending has fueled the largest debts under any President who inherited a growing economy, which Trump did. Trump’s tax cuts won’t stimulate the economy enough to make up for lost tax revenues, a warning from economists and Democratic members. According to Laffer curve, tax cuts only do that when rates are above 50%. Reagan’s tax cuts reduced the top rate from 70% to 50%. Trump thinks about national debt as he does personal debt. Forbes magazine analysis revealed in 2016 Trump’s business is $1.11 billion in debt. But unlike Trump who filed bankruptcy four times, US government can’t do that. Americans hold 2/3’s of the debt in U.S. Treasury bills, notes, and bonds, plus the borrowing against Social Security funds. Under Obama once the economy started to recover from the Great Recession, yearly debt increases ranged from $485 billion to $680 billion during Obama’s last 4 years. So far in Trump’s administration the yearly increase in debt has been $1 Trillion plus. The debt has reached a record $22 Trillion, or $67,000 for every man, woman, and child in the US. Trump promised reducing government waste but each program has a constituency lobbying Congress. Trump reduced regulations, but what will the damage years from now cost from deregulation. Example is banking deregulation under Bush helped create Great Recession in the mid-2000’s, with the poor and middle class suffering most. Corporations are in the profit business and most don’t consider the negative costs to the average person. The majority of Trump tax cuts were given to Corporations and top 1%, even though Corporations were extremely profitable and the wealth divide between the richest 1% and the rest of America is greater than it was in the 1920’s. Last government report issued shows the last 18 months of Obama, job creation was the same as Trump’s first 18 months. Go to Factcheck.org.  

Cheryl Moskal

(previous area resident)

Denver, CO 

 

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