fridi: (Default)
[personal profile] fridi posting in [community profile] talkpolitics
It seems the Trump plan for US economic growth relies almost exclusively on corporate tax cuts and tax cuts for the wealthy. A "let's put all our growth eggs in one basket and hope for the best" sort of approach. During his presidential campaign, Trump promised to create 25 million new jobs and generate an economy that trots along at a 4-6% annual growth rate. Apparently, neither Trump promise is going to happen any time soon*:

Forecast of weak economic growth raises big questions about Trump’s populist agenda

"President Trump’s budget would not add to economic growth or eliminate the deficit in coming years, the nonpartisan Congressional Budget Office said Thursday, casting doubt on a plan the White House has touted as central to achieving the president’s domestic agenda. The CBO projected that the economy would grow at only 1.9 percent under the White House’s plan — far below the 3 percent goal the administration continued to outline as recently as Thursday. It also warned that contrary to White House claims that deep cuts to the safety net in the budget would lead to a financial surplus in a decade, the deficit would actually be $720 billion. The report was one of several big questions that emerged Thursday about whether Trump would be able to deliver on the central promises of his populist agenda for governing. With his budget and health care, Trump is falling in line with some of his party’s most conservative voices, even if the policies threaten to harm many of the working-class voters who elected him.

The CBO report Thursday creates new complications for Republicans who need to build a coalition of conservatives and moderates to vote for a single budget proposal, the first step for what the GOP hopes will be an ambitious fall of policymaking. By rejecting the White House’s declaration that large-scale spending reductions and unspecified tax cuts will lead to economic growth, the CBO could make it harder for this coalition of GOP lawmakers to band together. If the CBO, which is run by a Republican appointee, raises questions about the lack of details in the White House’s tax plan now, it could serve as a warning to the White House and other Republicans as they try to design a more comprehensive plan in the coming months that is still expected to rely in large part on the assumption that the economy will grow markedly because of large tax cuts."

Or it could be more about the fact that the third wave of recovery following the Carter bubble is taking a little long to come, hmm? Picking up international growth numbers might save us, but the rates were not corrected and there is a lot of money sloshing around. To prevent a recession might be rather difficult given the parameters and optimism that seems to be rather misplaced.

* That, and the fact that Trump's plan assumed that the RINO congress led by McConnell and Paul Ryan would be able to pass legislation, which it so far has been unable or unwilling to do.

(no subject)

Date: 18/7/17 08:11 (UTC)
luzribeiro: (Rabbit!)
From: [personal profile] luzribeiro
If the anti-Trumpers and the party of NO would stop undermining the president we would see better results...

...oh wait.

(no subject)

Date: 20/7/17 01:00 (UTC)
halialkers: Djinn from Wishmaster, green being with red birthmark on right side of face (and as ye wish)
From: [personal profile] halialkers
TBH the GOP had everything it thought it wanted by now. Obama out of office, control of both Chambers of Congress, and a record implosion of the other party in spite of two terms in the White House. Its inability to use any of that would in a conventional sense mark the utter ruin and collapse of conservatism....except that it faces the party that managed that implosion and seems fairly feckless at how or what to do about any of it.

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