Republicans used to be the party of fiscal responsibility, or so they said. Yet, if we look back over the presidencies, the GOP has consistently raised the deficit. Democrats, on the other hand, have either held steady or had a minimal increase. President Bill Clinton actually balanced his national budget. Donald Trump’s economic ideas have exploded it.
The man who occasionally sits in the Oval Office has taken the deficit to new highs. Trump ran a “$208 billion deficit in May,” according to The Market Watch. That was a 41 percent increase over the past year, according to the Treasury Department’s new report:
‘…the deficit still would have increased by 8%, with spending up by 6% and revenue up by 4%.’
The interest rate went up a whopping 34 percent due to:
‘… adjustment on principal for inflation-protected securities.’
The Congressional Budget Office had some good news:
‘…the total inflation adjustment is actually smaller this year than last.’
The greatest expenses are the increase in defense spending and Medicare and Social Security. The Social Security fund was robbed long ago by Congress. Those spending items increased 73 percent. Should the timing shift from June 1 landing on a weekend, spending would have adjusted and shown only an 18 percent increase. Social Security benefits went up 11 percent, and the president’s defense spending went up 23 percent.
The Congressional Budget Office (CBO) indicated that the U.S. could easily run a record-breaking trillion-dollar deficit. Otherwise, it would be a close call with stagnant revenue growth:
‘Financial markets, far from worrying about the fiscal condition, are making it cheaper and cheaper for the U.S. government to finance this spending.’
Trump’s tariffs caused customs duties to jump 62 percent to five billion dollars. He increased tariffs on $200 billion of China’s products, a full 25 percent. Even worse, the president has threatened to tariff $300 billion additional Chinese products. He has been using this threat as a negotiation tool with China’s President Xi Jinping.
On the revenue side, there was a seven percent increase, primarily due to an increase in “individual and payroll taxes.” The drivers in that case were “rising employment, wages and hours worked.” Beginning in March:
‘…the individual income tax numbers are comparable because similar withholding formulas have been in place.’
Market Watch further noted:
‘The yield on the 10-year Treasury TMUBMUSD10Y, -0.41% has dropped from as high as 3.23% in November to just 2.13%. U.S. stocks, lower on Wednesday, have nonetheless climbed this year, with the Dow Jones Industrial Average DJIA, -0.17% up by 11%.AgeAge you qualify for the max monthly benefit.’
The man largely responsible for the outrageous tax bill, which cut taxes on the wealthy and corporations, Representative Kevin Brady (R-TX) said, according to The Washington Post:
‘I don’t think anything could have been worse for the deficit than to stick with the old economy and stick with the tax code that was so outdated.’
House Speaker Nancy Pelosi (D-CA) called the matter “B.S.:”
”Anybody who tells you the fact the tax cuts are going to pay for themselves. It’s not true. It’s nonsense. You can use the full words of B.S.’