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View Full Version : Trump budget based on 2 trillion dollar math error



Bo-4
05-23-2017, 10:00 AM
Perhaps one of our resident economic gurus could mansplain this to the class after first quarter Trump growth of 0.7% (lowest in 3 years)? :laugh:

One of the ways Donald Trump’s budget claims to balance the budget over a decade, without cutting defense or retirement spending, is to assume a $2 trillion increase in revenue through economic growth. This is the magic of the still-to-be-designed Trump tax cuts. But wait — if you recall, the magic of the Trump tax cuts is also supposed to pay for the Trump tax cuts. So the $2 trillion is a double-counting error.

MOAR if you Dare:

http://nymag.com/daily/intelligencer/2017/05/trump-budget-based-on-usd2-trillion-math-error.html

Of course, it'll never pass .. but it's still scary as hell:

http://www.slate.com/blogs/moneybox/2017/05/22/donald_trump_s_budget_won_t_pass_is_still_terrifyi ng.html

Tahuyaman
05-23-2017, 01:48 PM
I find it humorous that a liberal will try to preach to others about economic / budget issues as they relate to economic growth.

del
05-23-2017, 01:49 PM
he must have had ryan run the numbers.

Chris
05-23-2017, 01:58 PM
Look at it this way, Bo, you're assuming tax cuts are a lost when they are not. Trump is assuming they will help spur the economy and generate more revenue, the $2T. It's just a variation on the old trickle down theory, except instead of handing out money to the rich, more is left in their hands to invest in business and production.

Will it work? I have little faith in the government's ability to manage the market.

Tahuyaman
05-23-2017, 02:17 PM
If there's weak economic growth, people are not going to be willing to risk capital on creating new businesses or expanding existing ones.