Conservative economist reveals 6 reasons Trump’s policies don’t work

[bannork]

 Jessica Riedl, a senior fellow at the arch-conservative Manhattan Institute, has pointed out six ways Trump's policies are self-contradictory and doomed to fail. 

'Fiscal nonsense': Conservative economist reveals 6 reasons Trump’s policies don’t work

Here is my summary:

1. Trump is creating uncertainty

Flipflopping on tariff rates reveals their sense of being temporary measures. This is no way to attract permanent investment, for businesses abhor uncertainty.

 

2. Contradiction between tariffs, economic activity and efficiency

As tariffs increase, along with revenue from tariffs, import demand reduces, slowing down economic growth. The less competitive a market, the less efficient and less inclination to reduce prices for consumers.

3. Cuts to popular programmes inevitable if the elimination of the federal deficit is to be realised

Trump will be unable to reduce the federal deficit whilst also safeguarding programmes such as Medicaid, Medicare, veterans' benefits and Social Security. This is because mandatory spending programmes take up 75% of the budget whilst Trump aims to reduce the federal budget by 27% ( essential if the aim is to remove the $1.87 trillion federal deficit).

4.  Illogical Maths

It would be impossible for Trump to eradicate the budget deficit whilst also extending his 2017 tax cut package as the latter would lead to a sharp fall in tax revenue.

5. DOGE - the cure is worse than the disease

 Ironically, DOGE's work will probably increase the federal deficit rather than reduce it due to the dismissal of IRS workers employed to collect tax revenue.

6. Contradiction between support for policies that increase national debt whilst simultaneously trying to reduce it

   It's impossible to ignore the cost on the national debt of extending Trump's tax cuts, approximately $4.6 trillion over 10 years. 

 

[Harrisfan]

Orange man bad