Trump’s trillion dollar deficits are putting us on a path to fiscal ruin

[MDC 5,874]

It became very clear this month that neither the Trump White House nor its allies on Capitol Hill want you to know that the federal budget is already in very bad shape ... and getting worse.

 

It happened when the U.S. Treasury, the official keeper of Washingtons financial results, issued its monthly statement for the first 10 months of fiscal 2018 about federal revenues and spending and, therefore, the budget deficit.

 

Treasury showed what no president ever wants to admit: the deficit is spiking. The federal governments red ink this year is already 21 percent above what it was in 2017 and there are few prospects that the bottom line will improve anytime soon.

 

Except with infrequent and unsubstantiated platitudes about how the situation is going to get better, the Trump White House and Republicans in Congress have been doing everything possible not to talk about the budget this year. To avoid tough questions and politically embarrassing votes, the House and Senate have even refused to consider a budget even though they are required by law to adopt one.

 

But this year isnt the real issue.

 

Trump's deficits are permanent

 

Unlike the trillion-dollar budget deficits that occurred during the Obama administration that were temporary and largely the result of the Great Recession, the Trump deficits that will soon reach and exceed $1 trillion are permanent and will only get worse in the years ahead.

 

The Trump deficits are the result of changes in federal spending and revenues that will continue to be in place until some president and Congress decide to reverse them, that is, to increase taxes and make cuts to popular programs.

 

Not only has there been little appetite to do that, many in Congress and the Trump administration seem to be hell bent on ignoring the current deficit and national debt and increasing spending and reducing revenues even further.

 

For example, the White House last week proposed a new Space Force that would likely add billions, if not hundreds of billions, to the Pentagons budget. Trump has asked for $25 billion for the wall he wants to build between the U.S. and Mexico. His much talked about but still unseen infrastructure plan would cost countless billions more.

 

More: Earmarks explosion: Republicans could set record with big spending on pork barrel projects

 

Social Security & Medicare are slowly dying, but no one in Washington will lift a finger

 

Washington's swamp gets swampier with new farm bill: Where does food stamp money go?

 

When the House returns to Washington in September, it is set to consider another tax cut that could reduce revenues by another trillion dollars. None of this includes the natural and man-made disasters everything from earthquakes, forest fires and hurricanes to military, terrorist and foreign policy situations that occur each year and cost more than planned.

 

Nor does it include interest on the national debt. The combination of big increases in federal borrowing from the very large deficits and the need for Washington to roll over its sizeable short-term debt at higher interest rates will make this the fastest growing spending of all.

 

And all of this is happening when the economy is doing well. The relatively mild economic downturn that many are now saying will occur over the next few years will lower revenues and increase the deficit even further.

 

That makes the Trump administrations extreme reluctance to comment on last weeks deficit report from its own Treasury understandable: The news, which is already bad on its watch as a result of its policies, is only going to get worse.

 

Our national finances will only get worse

 

The White House was actually refusing to comment on three key issues.

 

First, it obviously doesnt want to talk about how big the annual deficit could get in the years ahead. The Congressional Budget Office is already projecting it will exceed $1.5 trillion by 2028, and that assumes no changes from existing taxes and spending laws and no recession.

 

Second, it also doesnt want to talk about how it will pay for more tax cuts, a Space Force, the wall, infrastructure or anything else ... including reducing the deficit.

 

Third, the Trump administration doesnt want to explain how its going to manage the U.S. economy out of a recession if one happens on its watch. The traditional federal response of tax cuts and spending increases might not be as politically palatable as it has been in the past given that it could drive the annual deficit to close to $2 trillion.

 

The budget policymakers on Capitol Hill and in the Trump White House obviously arent focusing on much beyond 2018 and 2020. But they should at least be willing to admit that theres a problem that will continue long after the votes have been counted in those elections.

https://www.usatoday.com/story/opinion/2018/08/20/donald-trump-trillion-dollar-plus-deficits-fiscal-ruin-column/986236002/

[KSB2424 3,082]

medicare/medicaid and social security are the two largest budget items. Both have been around as social welfare / insurance programs since the mid 1930's.

 

Both D's and R's don't care though as debt and deficit cuts are bad for trying to get reelected again.

[FortKnight 3]

I'm beginning to think Trump lies. Too many former staffers are saying as much. I get sour grapes but there must be some truth to what they are saying.

[Cdub100 3,366]

I'm beginning to think Trump lies. Too many former staffers are saying as much. I get sour grapes but there must be some truth to what they are saying.

Concern troll concerns

[NorthernVike 2,079]

Please explain how Obama's trillion dollar deficits are temporary when they have never been paid back.

[drobeski 3,061]

USA today

[KSB2424 3,082]

Please explain how Obama's trillion dollar deficits are temporary when they have never been paid back.

This as well as lumping in Social Security really irks me in this Op-Ed. Writer should have stuck with exact line items Trump has added to make it worse.

[Strike 3,932]

The last time I checked congress was in charge of passing budgets. Some people may need a refresher course in how our government works. Hell, even your own article makes numerous references to congress passing budgets or making cuts. But yeah, all Trump's fault!!!!!!

 

 

[TimmySmith 2,782]

So far Trump has been leaving the "expert economists" in his dust.

 

Here is this guy's twitter to show his allegiances.

 

https://twitter.com/TheBudgetGuy?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor

[Reality 2,710]

 

MDC gonna MDC

[drobeski 3,061]

Krugman lite

[MTSkiBum 1,591]

Regardless of this article, domestic spending has gone up under Trump, military spending has gone up under Trump, and revenue has decreased under Trump.

[MDC 5,874]

Remember when Trump said he was going to balance the budget and eliminate the debt in eight years?

 

lol

[KSB2424 3,082]

It was just a couple years ago Democrats were losing their mind, having commercials made saying PAUL RYAN is going to take away grandma's medicaid!@! Vote him OUT!@#! In an effort to reduce the deficit and pass a balanced budget.

 

Now its Trumps fault. The sheer audacity of people.

[KSB2424 3,082]

Regardless of this article, domestic spending has gone up under Trump, military spending has gone up under Trump, and revenue has decreased under Trump.

 

First two are probably correct. I don't believe the last is though.

[Reality 2,710]

Regardless of this article, domestic spending has gone up under Trump, military spending has gone up under Trump, and revenue has decreased under Trump.

 

I'll need to see a link on revenue decreasing under Trump.

 

TIA

[MTSkiBum 1,591]

 

First two are probably correct. I don't believe the last is though.

All 3 are factually correct.

[KSB2424 3,082]

All 3 are factually correct.

 

2016 - 3.27 Trillion

2017 - 3.32 Trillion

2018 - 3.34 Trillion (est)

2019 - 3.42 Trillion (est)

 

https://www.thebalance.com/current-u-s-federal-government-tax-revenue-3305762

[MTSkiBum 1,591]

 

I'll need to see a link on revenue decreasing under Trump.

 

TIA

I am not a political troll, in fact about the only issue I have ever cared about is the federal deficit. Voltaire should be along to confirm this hopefully.

 

I cared about it under Obama and I cared about it under bush.

 

I am sure you can find some link proving me wrong and that the fed took in .02 trillion more in the first year under Trump, however you have to adjust for inflation, since it is a very real factor.

[MTSkiBum 1,591]

 

2016 - 3.27 Trillion

2017 - 3.32 Trillion

2018 - 3.34 Trillion (est)

2019 - 3.42 Trillion (est)

 

https://www.thebalance.com/current-u-s-federal-government-tax-revenue-3305762

Ksb got this in before I finished

 

 

See my other response.

[Reality 2,710]

 

2016 - 3.27 Trillion

2017 - 3.32 Trillion

2018 - 3.34 Trillion (est)

2019 - 3.42 Trillion (est)

 

https://www.thebalance.com/current-u-s-federal-government-tax-revenue-3305762

 

That's what I figured.

 

[MTSkiBum 1,591]

 

That's what I figured.

 

You see how they went down his first full year in office?

[Mike Honcho 3,994]

Trump has asked for $25 billion for the wall he wants to build between the U.S. and Mexico.

 

The article doesn't make the assumption that Mexico will pay for the wall. FAIL.

[MTSkiBum 1,591]

 

The article doesn't make the assumption that Mexico will pay for the wall. FAIL.

This is what a troll looks like.

[joneo 529]

https://www.usatoday.com/story/opinion/2018/08/20/donald-trump-trillion-dollar-plus-deficits-fiscal-ruin-column/986236002/

 

Easy fix. stop giving away all the money to the liberal freeloaders.

[TimmySmith 2,782]

You see how they went down his first full year in office?

By your measure they haven't really increased since 2015.

[SenatorRock 708]

So now the leftards care about the deficit?

 

 

Nice fear mongering article, I guess muh Russia is officially over, huh?

[MTSkiBum 1,591]

By your measure they haven't really increased since 2015.

This has been a problem going back many years, you have a very good point.

[DankNuggs 305]

So democrats have to choose between being:

 

1. Deficit hawks

2. Spend like a drunken sailor because (insert Republicans, military, tax cuts)

[MTSkiBum 1,591]

So democrats have to choose between being:

 

1. Deficit hawks

2. Spend like a drunken sailor because (insert Republicans, military, tax cuts)

They will choose poorly

[Kanil 519]

The D or R doesn't mean much anymore. They're all the same people who will do whatever it takes to get paid/re-elected. Spend, spend, spend is the way to get your job for life.

[Voltaire 4,550]

When I was a kid, part of the reason I was a Republican was that tax-and-spend Democrats seemed to be the worst, most profligate economy handlers around.

 

Well, I still think they're miserable, but they are actually a step up on the GOP.

 

This may come as a shock to some of you but it's the actually the Democrats- the party of free handouts, unicorns, chocolate rivers, gumdrop rain, and big rock candy mountains- that have actually been less fiscally irresponsible than the GOP for these past seventeen years. That's because whenever the Dems passed one of their free stuff giveaway programs, like Obummercare, they also included a funding mechanism to pay for it.

 

The GOP on the other hand, they'll go and cut taxes - and worse they always target the top earners rather than the lower ones - with no offsetting spending cuts anywhere else. Less government revenue combined with no cuts in spending, how are you going to pay for all the stupid sh*t? Borrow! But then, it's worse. Then, they also go piss away more money on stupid military garbage we don't need. The revenues don't keep up to the expenses and it's all debt financed. The GOP are the ones that eliminated pay-as-you-go, and are far more responsible for blowing up the deficit than the Dems.

 

So fock the Borrow-and-Spend Republicans. This deficit issue, together with environmental disregard, is why I am no longer a Republican although I do still lean conservative. It's clear to me that the welfare cheating Dems using taxpayer money to buy us all ponies that are less irresponsible than the GOP on handling the government's budgetary matters.

[Frozenbeernuts 1,652]

When I was a kid, part of the reason I was a Republican was that tax-and-spend Democrats seemed to be the worst, most profligate economy handlers around.

 

Well, I still think they're miserable, but they are actually a step up on the GOP.

 

This may come as a shock to some of you but it's the actually the Democrats- the party of free handouts, unicorns, chocolate rivers, gumdrop rain, and big rock candy mountains- that have actually been less fiscally irresponsible than the GOP for these past seventeen years. That's because whenever the Dems passed one of their free stuff giveaway programs, like Obummercare, they also included a funding mechanism to pay for it.

 

The GOP on the other hand, they'll go and cut taxes - and worse they always target the top earners rather than the lower ones - with no offsetting spending cuts anywhere else. Less government revenue combined with no cuts in spending, how are you going to pay for all the stupid sh*t? Borrow! But then, it's worse. Then, they also go piss away more money on stupid military garbage we don't need. The revenues don't keep up to the expenses and it's all debt financed. The GOP are the ones that eliminated pay-as-you-go, and are far more responsible for blowing up the deficit than the Dems.

 

So fock the Borrow-and-Spend Republicans. This deficit issue, together with environmental disregard, is why I am no longer a Republican although I do still lean conservative. It's clear to me that the welfare cheating Dems using taxpayer money to buy us all ponies that are less irresponsible than the GOP on handling the government's budgetary matters.

Glad to hear you see the abandonment of environmental policies

[Voltaire 4,550]

Glad to hear you see the abandonment of environmental policies

I have my list of issues that each side does that piss me off.

 

Right now what disgusts me most are cultural issues that the left are responsible for: flag kneeling, cop bashing, white shaming, campus free speech issues., trannies winning girls sports competitions, SJW thought police everywhere, etc.

 

Liberals don't see that. They cheer it on and only see focus on what Trump is doing wrong but this p*sses me off more.

 

Because of all the damage the liberals are doing to cultural norms and values, a guy can more easily overlook a lot of the abuses Trump is doing to rule of law, obstruction of justice, press intimidation, ethics, race baiting as well as putting the fox in charge of the hen house on carbon, pollution, net neutrality, for-profit colleges, mistreated illegals and others to hate the liberals more.

 

Doesn't mean I approve of any of it. Just that I see Trump as less awful.

[LOD01 185]

We are $21 T in debt. Who cares. It's meaningless. If it wasn't we would already be belly up. I'm amazed that people can't figure this out.

 

For those who think it matters, give me the number of T's that actually tips us to 'financial ruin'. You can't. You know why? Because we run the world.

[Brad GLuckman 518]

We are $21 T in debt. Who cares. It's meaningless. If it wasn't we would already be belly up. I'm amazed that people can't figure this out.

 

For those who think it matters, give me the number of T's that actually tips us to 'financial ruin'. You can't. You know why? Because we run the world.

I think ratio of gdp to debt is what's important, not the overall number.

[LOD01 185]

I think ratio of gdp to debt is what's important, not the overall number.

Nah, meaningless: At the end of the 2nd quarter of 2017, United States public debt-to-GDP ratio was at 103.8%.^[2] The level of public debt in Japan 2013 was 243.2% of GDP,

 

Doesn't matter what it is, we are not going belly up. We go belly up, the world goes belly up. Worst case scenario is a stock market selloff on fear. I see that coming. Then like magic, it will be forgotten and put on the back shelf like it is right now.

 

They might even go thru with the Trillion Dollar Coin. Obama almost signed off on it. Bottom line is the debt is meaningless.

[FortKnight 3]

Concern troll concerns

I don't think they are trolling the President. I am only wondering if there is ANY truth to what these former staffers say.

[TimmySmith 2,782]

I just saw where the Trump admin intends on allowing the firing up of over 300 coal fired energy plants, which will be monitored and taxed per MT of emission to be increased annually. Several studies have concluded that this taxation will ultimately lead to the phasing out of the plants and an overall reduction of Co2 by 30% by 2030. Higher than the goal set by the failed Paris Accord.

[tanatastic 2,061]

From reading here I thought Trump single handedly wiped out every cent of deficit and we all get a Trump bonus on our checks just cuz he’s kewl? Anything that says to the contrary is fake news cuz Drobeski puts a sweet emoticon followed by the source, that’s how I know. All fake news, even if it’s verifiable fact.