It is another week, and we are patiently awaiting for Donald Trump to reveal his economic plan that is supposed to “Make America Great Again”. Trump plans to reveal his plan in Detroit today. And, from every report I have seen, it will break the budget like nothing else in history.
A few if the highlights is a massive tax cut, mostly for the wealthy, a tax cut that is said to be the biggest since Ronald Reagan. He also plans to make child care totally tax exempt. And, he plans to lower to corporate tax rate to 15 percent.
There is just one problem for Republicans with this “economic plan”. According to every single economist I have read, except his own team, this economic plan will add $11.2 Trillion to the already huge debt. As a matter of fact, it will increase the national debt by over 87 percent.
Remember, Trump plans to expand defense spending as well. He must increase defense spending since he believes we have a third world military that needs to be “built up” again. Defense costs a whole lot of money. He also says he won’t touch Social Security and Medicare, so how does he expect tax cuts to help reduce the budget deficit?
Even Newt Gingrich says the economic plan doesn’t add up. Appearing on Fox News with host Chris Wallace, Gingrich admitted that Trump’s tax and spending plan doesn’t add up. “Of course not,” Gingrich said. “Historically, no candidates have numbers that add up.”
That is kind of an astonishing comment. Here is one of Trump’s biggest advocates saying on national television, on the very station that loves Trump, that his “numbers don’t add up.” I have never heard a candidate’s advocate of any kind admit that the numbers are fantasy before. But, here is Gingrich saying exactly that.
During every election the numbers promised in economic plans hardly ever add up. This year, even Hillary Clinton says her plan would add about 2 percent to the debt. She admits deficit spending in her plan.
But, the usual actions of surrogates is to “defend” the tax cut and spending plan of their candidate. When Mitt Romney said he would not raise taxes on anyone back in 2012, nonpartisan analysts said that was impossible without raising taxes on the middle-class. Yet, his surrogates came up with numbers and “projected growth” plans that defended his plan.
Not so this year. The biggest Trump advocate says that the numbers just don’t add up. The real question is how do Republicans defend an economic plan that experts say will increase the national debt by over 87 percent? How do they go to the American people and say the debt is too high when their own candidate wants to raise it even higher.
Trump’s economic team, all free trade people by the way, claim that lowering the corporate tax rate to 15 percent will make our economy boom. It will make companies all over the world want to do business in America. That will mean more jobs and higher pay.
On the other hand, when economists are asked what is the highest expense in running a business, do they answer “taxes”? No, they say payroll. If that is true, and it is, then the only way to make America that “jobs magnet” they claim, they must lower payroll not taxes.
Lowering payroll is more up the avenue of Republican economic policies. That is the real reason behind their hatred for raising the minimum wage. That is the real reason many of them want to eliminate the minimum wage. They claim that “companies know better what to pay their employees” and we should just let them set the wage scale.
I could play Bernieac right here and say this plan will only increase the economic inequality in this country, which it will. But, I don’t have to. In order to get Republican attention, we just need to point to the fact that this economic plan will add $11.2 Trillion to the national debt.
Republicans have been preaching economic gloom and doom about the national debt for years. How can possibly defend this economic plan that will at least triple the national debt? Look, we tried this economic experiment before. It was called Reaganomics. It was also called Voodoo Economics. The end result was a huge budget deficit and tax increases for the middle-class.
It did not produce the “biggest jobs growth” in our history. As a matter of fact, the “biggest jobs growth” occurred under Bill Clinton’s administration not the Reagan administration. It was also under Clinton that we had our last “balanced budget”.
Some very simple mathematics for you. Basic arithmetic says that if you decrease the amount of money you have come into the bank, the bigger the deficit will become. Less money means you cannot pay all of your bills without borrowing more money.
You just have to ask the millions of people who were victims of the 2008 Great Recession. They lost their income and were unable to pay their bills which resulted in huge foreclosure rates. Simple arithmetic that we all have to live under.
Something Trump apparently doesn’t know anything about. I will eagerly wait to see exactly what Trump has to say about his economic plan. From what I have seen of it so far, it is full of the same old bull shit that Republicans have been preaching for decades.
There is an old saying in the sea services. The difference between a fairy tale and a sea story is that a fairy tale begins with “Once upon a time” and a sea story begins with “this ain’t no shit now”.
I wonder which phrase trump will use to open his economic plan.