Things are not getting better:
While it is unclear if the recent increase in government spending and the resulting increase in the budget deficit, has been a factor in the recent string of better than expected US economic data, at 2pm on Monday the US Treasury announced that in November, the government’s budget deficit rose to $136.7 billion, nearly double the $64.5 billion deficit reported in the same month of 2015, which however was largely a function of a calendar quirk…
However, even when adjusting for the “quirk”, the trend was concerning: the Treasury said that adjusting for that timing shift, spending rose about 6% last month from a year earlier and the monthly deficit widened by roughly 21% on the year.
Trump is a genius, but the nature of r/K is to vacillate. You go r, expend your resources, and then you go K. No matter how brilliant the people in charge, K will eventually catch up with you after a long enough period of r.
Trump has to cut taxes and spend money to try and jump start an economy that has been savaged by Obama’s mismanagement and deficit spending for eight years. The question is can the economy withstand that deficit spending and tax cutting just a little longer, until the Trumpian bubble kicks in and staves off the Apocalypse just a little longer.
Whatever comes of it, the Apocalypse will eventually come, because it is a law of nature.
Help spread r/K Selection Theory, because the Apocalypse is inevitable
[…] Deficits Rising […]
Fixing Obamacare should yield growth. Shifting to charter schools should yield another boom. Stopping the war on carbon dioxide, another boom. Stopping the waves of poor immigrants, another boom. The big problem is the entitlements bomb. Not everything is about spending and taxing. Those are drains, but there is a difference between adding weight to your donkey’s back, and tying him down. The main reason he needs to spend isn’t to stimulate the economy, but to keep the rabbits from revolting while he deals with structural problems. If he is as smart as people claim he is, maybe he can softly guide amygdala development in the population and hold the economy together. Human beings have the capacity to control their ecological pressures, we aren’t just masses being pushed around by nature. Look at Sparta, it was a weird sort of K republic for almost a thousand years.
Trump has to cut BUSINESS taxes and NOT spend money to HELP the economy.
Switch personal income taxes with a Value Added Tax to counter imports and grow american business.
Raise interest rates to lower bond values encouraging the wealthy to shift their investments from bonds to investment in America. Don’t think for a minute that the Fed coincidentally raised rates now that Trump is coming to the presidency.
So much more can be done by a BUSINESSMAN, not a politician.
Totally agree with the inevitable consequences. This is taking far too long already.