When will Republicans actually do what hey say they will and cut spending and the deficit? it’s not going to happen on the current watch. Remember when Republicans used to talk about reducing the deficit? I believe it was 2016. It seems like no one cares or even pretends to care now. What do you folks think? Is worrying about the deficit old-fashioned and irrelevant?
Here’s Larry Kudlow defending tax cuts (which are awesome) and the deficit (which is not):
“The gap is principally spending too much,” Kudlow said. “We have to be tougher on spending. People are quick to blame deficits on tax cuts, but I don’t buy that,” he said. The official added he expects the government to run deficits of 4% to 5% of the nation’s GDP, and said “it’s not a catastrophe.”
I don’t particularly blame the tax cuts, and, Mr. Kudlow, if spending is the problem, do something about it. I can’t figure out why you and yours in D.C. haven’t.
And I’m trying to wrap my head around this:
“Do not blame Trump for this. He inherited this mess,” Kudlow said.
They all say that, and I’m left to wonder who’s to blame. FDR? President Bush II and his Congress? So why bother fixing it?
It’s a fact, except for a brief period of Republican-Democrat gridlock in the 1990s netted a surplus, that anyone who goes to Washington, D.C., inherits the mess. Neither the president nor Congress have any good excuses for it.
The official added he expects the government to run deficits of 4% to 5% of the nation’s GDP,
So, deficit spending as a percentage of everyone else’s economic activity too? Don’t most of us tend to think of debt in terms of our own income? I run a surplus most of the time. I don’t count the debt of anyone else. The only one who might reasonably view things this way is someone from MMT land. As a percentage of income, the federal government is overspending its income by 24 percent.
The projected deficit in 2018, according to the CBO (other sources show larger deficits):
OUTLAYS $4.1 Trillion
REVENUES $3.3 Trillion
DEFICIT $793 Billion
DEBT HELD BY THE PUBLIC (End of Fiscal Year) $15.7 Trillion