Remember when the US Debt and Deficit were the rallying cry of the GOP? When President Obama was accused of racking up more debt than any other president in the history of mankind? This was, of course, after the Republican Party managed to wreck the US Economy, ushering in the ‘Great Recession” of 2007-2008.
Good Times!
While Paul Ryan touts the sheer delight of a secretary finding $1.50 more in her paycheck, Steve Mnuchin has indicated that the country is running out of revenue earlier than expected. He and his financial wizards have advised that the debt ceiling be raised no later than early March because the accounting sleight-of-hand to keep the lights on will have puttered out by then.
But why? The Trumpster has hailed the economy robust, the massive tax cuts as an engine of growth and prosperity. And, and, and . . . the stock market, which unfortunately fell off a cliff on Friday.
The fact that starting in February, the US government will be bringing in $10-15 billion
less in revenue each month just might be, could be, whatta think guys the reason for the need to borrow more money to pay the bills.
How much money?
Last Monday, the Treasury Department said they estimated $441 billion dollars would be needed for
this quarter. This would be the largest sum of debt requested since 2010, right about the time President Obama was attempting to drag the country from a financial ditch, the steepest since the Great Depression.
Btw, the Republicans sold this piece of reckless financial voodoo on the basis of a 3% annual growth rate. The CBO is projecting a 2.3% growth rate this quarter. If we’re lucky. Because there are also whispers of a housing collapse in the near future, over-exuberant 401K borrowing and other disturbing credit level spending that eerily sounds like the . . . good ole days.
Did I mention the stock market fell off the cliff Friday? I mention this primarily because the Trumpster has been beating his chest over stock market gains. Strange I haven’t heard a word about the stock dive on Friday, presumably brought on by the fear of inflation and increased interest rates.
For all the whooping and hollering, the tax cuts were in service to corporations and Republican donors. These donors have now turned on the funding spigots for their GOP lackeys. While Paul Ryan headlined the delighted secretary (he has since removed that tweet), he failed to tell his giggly constituent that he received $500,000 in campaign funds from Charles and Elizabeth Koch. Mere days after the the tax bill passed.
Coincidence?
Only if you believe Steve Mnuchin’s claim that the country’s lack of revenue has nothing, nada, zip to do with the tax bill giveaway of 2017. If that’s the case, I’ll tell you about Sam Brownback and how he saved the State of Kansas with his fantastical economic policies.
Yup, there’s an entire collection of Grimm Fairytales related to Republican Trickle-Down theory. We’re living inside one of those chapters right now.
https://www.nytimes.com/2018/01/31/us/politics/united-states-debt-limit.html
https://www.snopes.com/kochs-contributed-ryan-after-tax/
https://www.washingtonpost.com/opinions/trickle-down-economics-is-a-nightmare-kansas-proved-it/2017/06/12/c2d7aae0-4fa6-11e7-91eb-9611861a988f_story.html?utm_term=.db24c98d484f