For those awaiting the much talked about Donald Trump budget, it is here, and unlike he promised, it is far from being “Great!”. In fact, some may call it a con-job, especially if you voted for Trump based on his promise not to cut Social Security. The budget plan, as released by the White House, will actually cut Social Security Disability Insurance tremendously, leaving many older adults without a steady income.
If you follow some of Donald Trump’s previous business ventures, you will find that many of them are either based on frauds or gambling. Just like Trump University scammed millions from customers who believed they were actually paying for something of value, Trump’s budget is much of the same. Just like his casinos were based on generating revenue from gambling, the Trump budget is a huge gamble, in which case America doesn’t have favorable odds. The budget is actually being based off of an assumption that the U.S. economy will grow at a sustained 3%. However, most economist don’t believe the economy will grow at more than 1.5 – 1.9% in the near future.
“Apparently, the budget forecasts that U.S. economic growth will rise to 3.0 percent because of the administration’s policies — largely its tax cuts and perhaps also its regulatory policies,” Former Treasury Secretary Larry Summer wrote in a Washington Post Article today. “Fair enough if you believe in tooth fairies and ludicrous supply-side economics.”
The worst part of the latest budget is that it could be summed up as a “bait and switch”. The funding that is being cut is representative of a huge portion of individuals who actually voted for Trump and still support him. Besides cutting a large portion of Social Security, which Trump campaigned on not doing, it also cuts portions of federal student-loan repayment funding, $610 billion in Medicaid funding, and includes military base closings around the country.
The biggest scam of them all though, is the fact that the Trump administration is making a double-count error in assuming a $2 trillion increase in revenue through economic growth, but also another $2 trillion that is supposed to pay for the upcoming Trump tax cuts. So the administration assumes we will see $2 trillion in revenue from growth to balance the budget in 10 years, but also a $2 trillion increase in revenue in order to pay for Trump’s tax cuts. It simply doesn’t make sense! If you claim to have $2 trillion in revenue that will be used to balance the budget, that same $2 trillion can’t also cover all of the tax cuts that Trump promised. Either Trump’s team is extraordinarily dumb and didn’t realize this $2 trillion math error or it’s just another scam — like Trump University — to make America feel like we are making progress, when in fact we aren’t.