Donald Trump’s Economic Policy : US must make more debt – $ 250 billion
The White House’s economic outlook does not go down: the US must make a lot more debt than promised by US President Trump. According to Congress calculations, this will remain so.
According to new calculations, the US budget deficit will be higher in the first two years of President Donald Trump than expected. Because of lower tax revenues and higher expenditures on health care in the military, the gap in the current fiscal year and 2018 is expected to be nearly $ 250 billion greater than initially estimated, Mick Mulvaney, the director of the budget, said in a statement to Congress.
This would lead to a deficit of $ 702 billion, or 16 percent, in 2017, and $ 589 billion in 2018, 33 percent higher than previously expected. Trump had announced that the deficit of the federal government would be offset, in particular, by higher tax revenues as a result of stronger economic growth as well as by reforms such as those of the health care system. Many experts consider this goal to be unrealistic.
No black zero in sight
Householder Mick Mulvaney is a supporter of Trumps controversial economic policy course. Mulvaney was the last person to say “MAGAnomics” in a “Wall Street Journal”. MAGA stands for Trumps election campaign “Make America Great Again”.
Independent housekeepers do not think it possible that Trump can achieve a balanced state budget – without new debts – through its program. The Congressional Budget Office (CBO), an authority of the US Congress, presented its own calculations on Thursday. According to this, Trumps economic rates would not lead to a black zero until 2027. In fact, the US deficit will be higher than 2016 in each year. Last year, the US had to borrow 585 billion euros in new debt.
The crack point is different assumptions for the achievable economic growth. Trumps team calculates with at least 3 percent growth per year. The CBO, on the other hand, estimates an average of 1.9 percent. The CBO is a nonpartisan authority.