When President Obama took office, the economy was in flames. Unemployment was soaring and entire industries were in jeopardy. Indeed, the entire world economy was on the verge of collapse. In order to help stem the bleeding, the Obama administration, the Democratic-led Congress and the Federal Reserve implemented a series of stimulus actions, including tax cuts. Those actions temporarily added to the deficit. But they were necessary. Nevertheless, Republicans howled about the “wasteful spending.”
By contrast, Trump inherited a healthy economy and declining deficits. Instead of allowing interest rates to gradually rise, raising taxes to increase revenue and doing what most economists recommended, he orchestrated a massive tax cut for corporations and the very wealthy. Contrary to his grandiose promises and projections, the economy did not noticeably change. Rather, it continued on the same path begun under Obama. What did change was federal revenue, which dramatically dropped. At the same time, deficits soared. The deficit for 2020 is $1.10 trillion and the national debt has now surpassed $22.5 trillion!
And what do you hear from those Republican deficit hawks now? Crickets.
What we are beginning to hear from Republicans is that we must reign in “entitlements” – those safety net programs for the elderly and the poor. They say they want to make serious cuts to Social Security and Medicare. They want to cut food stamp benefits for 3.1 million Americans. They want to cut lunch programs for school children. And they want to end the Affordable Care Act, which made health care affordable for millions of Americans.
In other words, they now seem intent on punishing the poor while continuing to give away hundreds of billions to the Pentagon, an organization that cannot account for trillions in past spending. They want to continue giveaways for corporations. And many Republicans have even stated that they plan to further cut taxes for the very wealthy.
If they are successful, it will mean that the federal deficits and the debt will continue to soar while more ordinary Americans will suffer. Seniors will struggle to pay bills, even to eat. Poor men, women and children will struggle more. The number of homeless will continue to grow. And middle class Americans will not only be asked to make up for the lost revenue with higher taxes. The number of people in the middle class will dramatically decline.
But you can be certain that the incomes of Trump, his family and his wealthy friends will continue to grow.