Mr. Trump told his loyal Trumpians he would bring jobs back to the United States during his 2016 campaign. He also said he would build a border wall, and Mexico would pay for it. The president also told Americans China would pay the tariffs when he started the trade war with the Chinese.
All of those phony claims were part of Trump’s plan to turn America’s democracy into a version of Putin’s presidency. Mr. Trump likes Putin for several reasons. Putin rules Russia like a dictator and he’s rich. Putin doesn’t like the European Union and he rules using his immoral constitution. Mr. Trump and Putin made a deal before the 2016 election, and that deal continues to disrupt global economic growth as well as economic growth in the United States.
The president’s fiscal policy is more about spending than cutting the federal debt. That’s was another claim Trump made in 2016. Right now, the federal debt is 79 percent of Gross Domestic Product, according to the Congressional Budget Office. If Trump continues to add more than $1 trillion to the federal debt each year, the debt will be 95 percent of GDP by 2029. The last time debt was that high was after World War II.
Trump’s 2017 tax cut, as well as his tariff wars, prove Trump’s fiscal responsibility meter is out of order. The government broke another record in December when it actioned the latest seven-year treasury notes. The auction raised the total amount of two to 30-year bonds and notes to more than $2.6 trillion. That’s an increase of 26 percent over the 2017 total.
The economy can’t handle that amount of debt if Trump wins in 2020, according to Gordon Gray, the director of fiscal policy for the American Action Forum. Gray claims that amount of debt competes with private investment. And Gray also said the Federal Reserve Board will have less flexibility if Trump’s geopolitical crisis escalates and his tariff addiction creates a recession in 2020. Mr. Trump’s fiscal agenda is in the process of laying the framework for another fiscal crisis. The Feds will have a tough time digging out of a recession if interest rates continue to approach negative territory.
The Committee for a Responsible Federal Budget claims Trump’s fiscal ineptness will add $2.2 trillion to the national debt in 2019. The federal debt along with the trade war, a lack of new business investment, and a consumer market that may be on the verge of a slowdown could throw the U.S. into a painful recession in 2020 even though unemployment and inflation numbers say otherwise.