re: Will we see any balanced budgets/surpluses under Trump's next admin?

When will the debt become a problem? When will someone call the government's bluff? I sincerely don't understand this piece.

Energy independence: then we don’t need foreign oil.

Close the border: limits welfare

Stay out of foreign wars: less expensive than funding Ukraine, Yemen, Africa, Israel, Gaza, etc

Stop DEI. This will increase productivity.

End Dept of Edication: leave it to the states

Federal government should be small: State, Treasury, and Defense. The rest goes back to the states.

Repeal the income tax. National sales tax. Gets money from anyone who buys something. Makes people want to work to make more money.

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What do you think about this write-up?

LINK /


It argues that debt is necessary for economic growth a

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Some debt? sure

From the article

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But instead of focusing on the total amount of debt, we care about 1) how fast the national debt is growing and 2) how we’re servicing that debt.

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It’s not that we paid down the debt, it’s that our economy (the GDP) outgrew those levels of debt. And while today we’re at high levels of debt, if the economy continues to grow, we can also outgrow those levels of debt. It may take a long time, but it is possible.

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The current interest on the debt is 3.2 or 3.3% or so.

A good GDP growth rate is in the 2-3% range. This growth rate (1) would never be constant annually, due to recessions and (2) would ultimately cause major inflation if it occurred too often.

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Interest costs are going up, but they’re still well below the amount we bring in on tax revenue. Just by that number alone, more comes in than goes out to service national debt.

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Sure, but what about all the OTHER expenditures? Social Security, Medicare, Medicaid, Defense, and the other discretionary spending?

More does NOT come in than goes out just for those (and our interest payments on the debt.

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And what if we transported you to 1991, when Ross was born, and you knew the debt was going to go from $3 trillion up to $33 trillion—would you invest? Of you course you would, because you would know that the economy and corporate profits grew alongside the debt over that period.

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The economy didn't actually grow, though. We just borrowed a lot of money and pretended that was organic productivity (especially in finance, ironically).

OK, Groomer

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The economy didn't actually grow, though. We just borrowed a lot of money and pretended that was organic productivity

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I think that’s their point. It actually did. They agree with you that it was debt-driven, but that due to the nature of our credit-driven economy, it will always be driven by debt- just public or private, and public debt is more predictable than private debt.

To change this would require an entire overhaul of our financial and economical system, and any discussion of increasing revenue or cutting costs is kind of a meme.


I don’t necessarily disagree with them.

No. It is impossible, even if you cut 100% of discretionary spending. Until someone has the political courage to take on SS and Medicare you cannot balance the budget much less create a surplus.

For FY 23 Mandatory Spending + Interest on the Debt was 4.5 trillion and revenue was 4.4 trillion. So if you cut everything else, icluding defense you run a $100 billion deficit.

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Why are y'all trying to separate Congress from Trump?

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I don't think that's the case at all. Most know the pubs dumped that platform because the people want money from the Treasury and until that changes in the majority of voters its a losing hand to play right now.
And this is a long term problem and we have right now a lot of major short terms problems Flo that way overshadow the future right now. Its not a 'gotcha' like you think. We know

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They agree with you that it was debt-driven, but that due to the nature of our credit-driven economy, it will always be driven by debt- just public or private, and public debt is more predictable than private debt.

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But they basically dismiss public debt when, while it doesn't have as direct of impact as private debt, it has real-world implications.

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To change this would require an entire overhaul of our financial and economical system, and any discussion of increasing revenue or cutting costs is kind of a meme.

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This is not correct.

We can create public surpluses to pay down public debt while the private market relies on debt. We can even do this with the federal reserve.

Just cut spending.

Now, this would have some negative effects on GDP (b/c public spending fuels a lot of industries), but it is a completely different issue than what you said above.

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I don't think that's the case at all.

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The distinction (pushing blame only to Congress) has been made at least 5-10 times ITT

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Most know the pubs dumped that platform because the people want money from the Treasury

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Correct.

However, they still like to put on the fiscally conservative avatar and claim MAGA is "small government" and "the Democrats are the ones buying votes"

Figured, given the financial distress of this morning, that a bump was in order.