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Thread: Will President Trump Create More Debt Than President Obama?

  1. #1

    Will President Trump Create More Debt Than President Obama?



    Will President Trump Create More Debt Than President Obama?

    Trump doesn't want to fix Social Security or Medicare.


    Libertarians and conservatives are skeptical of the government's ability to do anything well. But there's one thing the government excels at producing: debt. Granted, this isn't a good thing, but we must nevertheless recognize the government's skill at it. And just when you think it can't outdo itself, our government surprises you with an extra production of debt and deficit, just like that.

    Case in point: the new Congressional Budget Office's budget and economic outlook for 2017 to 2027. The main conclusion is that the government continues to spend more money—faster and above and beyond the revenue it collects. In other words, our debt is growing big-time.

    Obviously, we can't indefinitely spend 21 percent of our gross domestic product while collecting 17.8 percent in revenue. But it's particularly worrisome because we're already starting from a point of high deficit and debt levels. According to the CBO, under the current law, deficit spending will be $559 billion in 2017, but it will reach the trillion-dollar mark in 2023 and go on to total $1.4 trillion in 2027. As a share of the economy, the deficit will go from 2.9 percent in 2017 to 5 percent in 2027.

    Think about that for a second. Assuming there are no recessions in the next decade, the CBO projects that within five years, we will return to the deficit levels we had during the Great Recession. At least back then, we knew that things were going to improve at some point. And they did, albeit very slowly. But it won't be the case this time. If anything, it could get worse if the economy were to slow down even further.

    Do you know what else grows along with deficits? Debt and the interest we pay as a price for borrowing money from domestic and foreign investors. The debt as a share of the economy will go from 77.5 percent in 2017 to 88.9 percent in 2027, while our interest payments will balloon to $768 billion in 10 years, up from $270 billion this year.

    As always, the culprit behind these deficit and debt explosions is growing spending on Social Security, Medicare, Medicaid, and interest on our debt. These programs have long been and remain the driver of our future debt. The CBO reports that they will consume $5 trillion of our $6.5 trillion 2027 budget.

    Not to worry, you say; the Trump administration has promised to repeal the Affordable Care Act. It's true that the CBO budget doesn't take under consideration the promises made by the new president, including the one about getting rid of his predecessor's health care law. Unfortunately, we will have to wait and see what the new president and Congress actually end up doing on that front.

    While it's clear that we are heading toward some partial repeal of the law, the rumors about what they are planning to replace it with aren't too reassuring. First, even though they've had seven years to do it, the Republicans still haven't coalesced around a replacement plan. Some would like to keep a few expensive features of the ACA, such as the ones benefiting dependents who are younger than 26 and people with pre-existing conditions. President Trump has made some off-the-cuff remarks about insuring every American, too. In other words, the replacement plan may end up being a drain on the budget just like the ACA.

    We were told last week that the president would propose some big spending cuts. Call me a cynic, but I'll believe it when I see them implemented. For one thing, as mentioned earlier, President Trump has repeatedly said he won't touch Social Security or Medicare—the two programs the CBO says will be responsible for most of the spending growth in the next decade if nothing changes. Trump also made clear that he wants massive infrastructure spending and more spending on defense—and he talked about expensive paid family leave, as well as large child tax credits, on the campaign trail. If you add to that potential trade wars and increased levels of cronyism, we could see even more government spending than we have projected now.

    To be fair, Trump wants to see fundamental tax reforms and deregulation implemented. However, it's hard to see how these policies, no matter how great they are, could generate enough growth—and hence revenue—to compensate for all that new and old spending. That is why, in four years, Trump may be able to truthfully call himself, not Barack Obama, the biggest debt creator of all time.
    http://reason.com/archives/2017/01/2...e-more-debt-th
    “I don’t think that there will be any curtailing of Donald Trump as president,” he said. "He controls the media, he controls the sentiment [and] he controls everybody. He’s the one who will resort to executive orders more so than [President] Obama ever used them." - Ron Paul



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  3. #2

  4. #3
    Quote Originally Posted by vita3 View Post
    No.
    maga.

  5. #4
    “I don’t think that there will be any curtailing of Donald Trump as president,” he said. "He controls the media, he controls the sentiment [and] he controls everybody. He’s the one who will resort to executive orders more so than [President] Obama ever used them." - Ron Paul

  6. #5
    No, I don't think he will create more debt. He has already started consolidating agencies, eliminating others. I think he will eventually get around to Social Security and Medicare, but it will likely be 3 years down the road.

    Plus, his vision for infrastructure and the pipelines will bring a lot more people into the job market, or to better paying jobs. More taxpayers=More money coming in.
    Last edited by euphemia; 01-26-2017 at 06:33 PM.
    “When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it”~~ Frederic Bastiat

  7. #6
    “I don’t think that there will be any curtailing of Donald Trump as president,” he said. "He controls the media, he controls the sentiment [and] he controls everybody. He’s the one who will resort to executive orders more so than [President] Obama ever used them." - Ron Paul

  8. #7
    They all will. And exponentially (literally) worse at that. Unless something drastic happens.

  9. #8
    Remember when the media was threatening us that a Trump Presidency was going to crash the stock market? I think all this gloom and doom "speculation" has become useless. Some seem to hope the doom and gloom comes true just so they could say they were right. Ugh.


    Stock market soars amid Trump's pro-business moves

    New York Post-21 hours ago

    The president's flurry of pro-business executive orders sent the stock market soaring to a record high on Wednesday.
    Last edited by PatriotOne; 01-26-2017 at 07:16 PM.



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  11. #9
    Quote Originally Posted by euphemia View Post
    No, I don't think he will create more debt. He has already started consolidating agencies, eliminating others. I think he will eventually get around to Social Security and Medicare, but it will likely be 3 years down the road.

    Plus, his vision for infrastructure and the pipelines will bring a lot more people into the job market, or to better paying jobs. More taxpayers=More money coming in.
    Plus $1 trillion more spending on defense. Plus $1 trillion spending on "infrastructure". Plus a $ trillion in tax cuts for the wealthy. Plus the costs of his wall. Yep- if he gets what he wants, debt is going to soar. The "trimmable" (non- mandatory) spending in the budget (which includes the Department of Defense) is only a bit over $1 trillion. If you leave out defense, only about $400 billion can be cut in spending. There isn't nearly enough to offset his new spending plans. And that is if every department besides Defense is cut to zero. He wants to spend more on Veterans and Homeland Security too.
    Quote Originally Posted by Swordsmyth View Post
    The quality seems to have dropped significantly since I came here, I guess you get what you pay for.
    "There is always a tweet. That has become accepted fact in the Trump presidency: For every pronouncement the President makes, there is at least one tweet from his past that directly contradicts his current view." -CNN

    I am Zippy and I approve of this post. But you don't have to.

  12. #10
    He will raise the debt, and the republican congress/senate will help him do it.

    Gulag Chief:
    "Article 58-1a, twenty five years... What did you get it for?"
    Gulag Prisoner: "For nothing at all."
    Gulag Chief: "You're lying... The sentence for nothing at all is 10 years"



  13. #11

  14. #12
    there is already high debt and it will be paid off through inflation it's inevitable. Obama gave us twice what we had, there is no going back.
    Last edited by agitator; 01-26-2017 at 07:57 PM.

  15. #13
    Quote Originally Posted by agitator View Post
    there is already high debt and it will be paid off through inflation it's inevitable. Obama gave us twice what we had, there is no going back.
    True , Pelosi , Reid and Obama broke the bank .
    Do something Danke

  16. #14
    Quote Originally Posted by agitator View Post
    there is already high debt and it will be paid off through inflation it's inevitable. Obama gave us twice what we had, there is no going back.
    So if the rate of inflation gets high enough the dollars we are in debt will go to zero even if the government does nothing? How does inflation make debt go away? (inflation can make what you owe worth less but it does not make it go away and does not pay it off for you).
    Quote Originally Posted by Swordsmyth View Post
    The quality seems to have dropped significantly since I came here, I guess you get what you pay for.
    "There is always a tweet. That has become accepted fact in the Trump presidency: For every pronouncement the President makes, there is at least one tweet from his past that directly contradicts his current view." -CNN

    I am Zippy and I approve of this post. But you don't have to.

  17. #15
    He will absolutely create more debt than Obama.

  18. #16
    I don't understand why people think "Presidents Accrue Debt"... The power of the purse rests assuredly with Congress and Congress alone... Presidents have influence over much of the spending, but they do not pass budgets, spending measures, continuing resolutions, etc.

    If spending and debt are going to be cut or reduced, that burden lies squarely on the shoulders of The US House of Reps and the US Senate.
    Last edited by jllundqu; 01-27-2017 at 02:38 PM. Reason: I can edit whatever the hell I want. Trump =/= Liberty
    There are only two things we should fight for. One is the defense of our homes and the other is the Bill of Rights. War for any other reason is simply a racket.
    -Major General Smedley Butler, USMC,
    Two-Time Congressional Medal of Honor Winner
    Author of, War is a Racket!

    It is not that I am mad, it is only that my head is different from yours.
    - Diogenes of Sinope



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