Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
This is a big deal.
Higher interest rates combined with higher deficits and low wage growth mean bad things for our budgets, both personal and governmental.
The deficit under Obama was large because he inherited the worst economic situation since the Depression and funds were needed to correct the problem created under the GOP watch.
Trump of course campaigned on cutting spending and reducing the debt.
I do not want to even hear about rescinding tax cuts, or raising taxes, until Congress makes substantial cuts in spending. I am not giving them more of my money to blow on the non-stop spending sprees. Shrink the federal government and reduce or eliminate all the barrels those hands are in, then we can figure out a meaningful way to pay off the debt. Both parties have been selling us out for decades, enough is enough. Rein it in, let state and local governments handle more of the populations needs. That gives us all more power, if we don't like local/state policies it is a lot easier to move to another area than another country.
I do not want to even hear about rescinding tax cuts, or raising taxes, until Congress makes substantial cuts in spending. I am not giving them more of my money to blow on the non-stop spending sprees. Shrink the federal government and reduce or eliminate all the barrels those hands are in, then we can figure out a meaningful way to pay off the debt. Both parties have been selling us out for decades, enough is enough. Rein it in, let state and local governments handle more of the populations needs. That gives us all more power, if we don't like local/state policies it is a lot easier to move to another area than another country.
Agreed. It is not the revenue side that is lacking, its spending that's out of control. I would cut everything across the board, and for starters eliminate both Carter's Dept. of Education (states run education in this country) and Bush Jr's Dept. of Homeland Security (we already have FBI, CIA, and NSA). I don't care which party likes what, bipartisan cuts for all!
Well, at some point, even if the budget got balanced every year, interest payments on the debt were going to rise because interest RATES were going to rise. The Obama Era zero percent interest rates from a Federal Reserve tasked with preserving one man's economic legacy had to end eventually, so said the central banks fo all the national central banks.
Fiscal hawks were talking about the interest rate rise and what it would eventually do to the portion of the budget that pays interest on the current debt...back in 2009, when the first rounds of quantitative easing and interest rates slashes were happening. And the warning got more and more urgent every year, after QE2, QE3, etc and year after year after year of Bernanke and Yellen keeping interest rates near zero to shield Obama himself from the necessary pain the economy needed to feel.
Interest rates have needed to rise for at least 6 years, if not 8-9. That isn't on Trump or the freaking tax cuts. $19.8 trillion of the current $21.5 trillion belong to all the presidents before Trump. Which is to say that of the current interest payments on the debt, 92% is based on people OTHER than Trump. But if you'd lik to shriek and wail about his 8% being the real tipping point, then go right ahead. The debt isn't soaring under Trump, at least not by percentage. Obama's first 2 years in office, the US added close to 40% to the outstanding national debt, and Obama doubled the debt during his 8 years. Thus far, Trump has added a total of 8% to the debt in 1.67 years, which puts him on pace to add 47% to the debt he inherited at the beginning of his 1st term, assuming he serves 8 years and his policies remain as they are right now.
And remember, neither Congress nor the White House set interest rates. The independent Federal Reserve Board of Governors does that.
"The cost of interest is on track to be $390 billion next year which is nearly 50% more than in 2017, and it is already the fastest growing government expense, the Congressional Budget Office said."
Let that sink in. It shows how irresponsible and reckless the Trump tax cuts are.
Trump has a horrible track record of failed business ventures and bankruptcies. It's like he's trying to do the same to the US government.
And, on an unrelated note, insiders at major corporation are selling stock in their own companies at a record pace. They must know an economic downturn is coming.
The problem is spending.....not tax cuts! If a reduction in taxes increases revenue to the Treasury then it should be obvious that they are NOT the issue!
As far as Trump's record of failed businesses and bankruptcies, his record is actually pretty damn good. Several hundred businesses and only a 5-6 bankruptcies. People that have actually built businesses (I take it you have not) would like that record. By the way, I am in no way a Trump supporter....just the occasional devil's advocate.
A downturn will happen....just take a look at history. If you can determine precisely when perhaps you can make some money!
The deficit under Obama was large because he inherited the worst economic situation since the Depression and funds were needed to correct the problem created under the GOP watch.
Trump of course campaigned on cutting spending and reducing the debt.
You act as though Obama wasnt a member of that same spendy congress during the Bush admin.
And you could have saved yourself some time by just posting "spending by their guy bad, spending by my guy good"
The last thing any admin needs is more of the peoples money as it already steals several trillion from us every year.
Advocating it take more is simply criminal.
The deficit under Obama was large because he inherited the worst economic situation since the Depression and funds were needed to correct the problem created under the GOP watch.
Trump of course campaigned on cutting spending and reducing the debt.
The problem is spending.....not tax cuts! If a reduction in taxes increases revenue to the Treasury then it should be obvious that they are NOT the issue!
The tax cuts are a form of spending when there's a deficit. I don't know why so many fail to understand this concept.
If tax cuts are granted while the budget is in deficit, all of the red ink must be financed by selling Treasury bonds. This adds to the public debt, burdens all taxpayers, and our kids. The ONLY time "people keep more of their own money" with tax cuts is when the budget has a surplus. Otherwise, when there is a deficit, tax cuts are nothing more than a federal subsidy.
Deficit spending is appropriate and wise during recessions as a way to "prime the pump" and spark a recovery. Under classic Keynesian economics, though, the flip side to that is to cut back spending during booms and run the government either balanced or a small surplus. Trump has done the reverse, engaging in deficit stimulus during a boom, which is reckless and not supported by most economists.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
