Trump gave billions to the
richest — now “Red Tide” time
(Deficit again nearing $1
trillion )
WASHINGTON (AP) — The Trump administration now reports a river of red ink.
The federal deficit (def.) for the 2019 budget year surged 26% from 2018 to $984.4 billion — its
highest point in seven years. The gap is widely expected to top $1 trillion in
the current budget year and likely remain there for the next decade.
The year-over-year widening
in the deficit reflected such factors as: (1) revenue lost from that 2017 tax
cut and (2) a budget deal that added billions in spending for military and
domestic programs.
A key part of this article I spotted: There is a new school of economic theory known as the “modern
monetary theory” that argues major economies as the United States and Japan
don't need to worry about running deficits because their central banks can
print as much money as they need.
That also remains a distinctly minority view among economists. Most
still believe that while the huge deficits are not an immediate threat, at some
point they will become a big problem. That will crowd out borrowing by
consumers and businesses and elevate interest rates to levels that ignite a
recession.
What's more, the interest
payments on the deficits become part of a mounting government debt that must be
repaid and could depress economic growth in coming years.
In fact, even with
low rates this year, the government's interest payments on the debt were one of
the fastest growing items in the budget, rising nearly 16% to $375.6 billion.
My 2 cents: Where are the “GOP deficit hawks now?” Oops won’t work folks.
Logical common sense spending always works –
look how Bill Clinton worked to balance the budget and produce a huge surplus.Then the GOP under Dubya Bush blew that in short order.
Ah, lingering
for those good old days, right? Yeah, right.
Thanks for stopping by. (Spend wisely, most Americans do)…
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