President Donald Trump used his first speech before a joint session of Congress to talk about what he wants to achieve once he implements his plans. He also touted his "successes," saying his intervention in America's affairs has already produced results, such as helping to push companies to invest so much in the country that they will soon create “tens of thousands of new American jobs.”
While campaigning, Trump also touted the importance of his business experience, saying that “[w]e need people in Washington that know how to make a deal.”
But if experts are correct, the current administration's handling of the country's economy may lead to yet something else Trump knows a lot about: debt.
During an interview at FOX Business Network, David Stockman, the former budget director under President Ronald Reagan, said that Trump's new budget blueprint doesn't add up. And that means that our future is at stake.
“We don’t need a $54 billion increase in defense when the budget already is ten times bigger than that of Russia. We don’t need $6 trillion of defense spending over the next decade because China is going nowhere except trying to keep their Ponzi scheme together.”
When discussing the president's promises to cut taxes “across the board,” Stockman also added that, with the kind of spending the president is hoping to get away with, it's unlikely that taxes will be slashed.
“I don’t think we will see the tax cuts this year at all,” he told Neil Cavuto. Instead of any kind of relief, Stockman said he expects to see a “debt ceiling crisis like never before … and that's what people don't realize.”
The "debt ceiling" limits the amount of debt that the U.S. Treasury can issue. By raising these limits, the president will do nothing to address the factors that are driving our debt problem and draining the U.S. economy.
Instead of creating wealth and helping the country to cope with the financial issues they might be going through, the public will foot the bill — but not immediately.
“As the debt rises, this can exacerbate the deficit because more revenue has to pay interest on the debt, crowding out other spending,” the Wall Street Journal notes.
In other words, as Trump raises the debt ceiling to borrow more to spend on his megalomaniac projects, the overall amount we owe individually will also rise, forcing the government to increase taxes or stop paying for services to stay afloat.
If Stockman is correct, Trump could be adding to the debt at such an alarming rate, that we may soon have to pay much more in taxes.
The result? People will have less money to spend on their own bills, and companies will feel the weight of the extra burden, causing an employment crisis.
Is that the legacy that Trump will leave behind?
Banner and thumbnail credit: Reuters, Carlos Barria