Talk about moving in the right direction!
After eight years of the Spender-In-Chief, we finally have a business man back in the White House. And imagine this: he’s actually running a fiscally responsible, conservative operation, trying to fix Obama (and all prior President’s) errors!
The Trump budget was just scored by the CBO and the big headline is that it will shrink the U.S. deficit by HALF by 2027! Long thought impossible, Trump has us back on the right path!
Thank you Mr. Trump, please keep up the good work!
Here’s the scoop, from our friends over at ZeroHedge:
CBO Scores Trump Budget Shrinking US Deficit By Half By 2027
There’s good news.. and bad news. CBO has just released its ‘score’ of President Trump’s proposed budget, noting that the plan would shrink the deficit by a half from their baseline by 2017 (good news). However, even accepting Trump’s dynamic scoring and 5% growth expectations, CBO is unable to balance the budget and Yellen’s recent “US debt is unsustainable” warning seems ever more prescient.
Trump’s budget would shrink notably from the CBO baseline…
According to CBO’s estimates, the deficit would fall from the $693 billion projected for 2017 to $593 billion in 2018 under the President’s proposals. After that, the deficit would generally rise, totaling $720 billion in 2027. The cumulative deficit over the 2018–2027 period would total $6.8 trillion. Measured as a percentage of output, the deficit would decline from 3.6 percent of GDP in 2017 to 2.6 percent at the end of the period. The deficit would average 2.9 percent through 2027. (The average deficit over the past 50?years has equaled 2.8 percent of GDP.) Those estimates exclude any macroeconomic feedback effects.
This is still a big deficit, and coming a day after Janet Yellen warned that the US debt situation was unsustainable, it seems more prescient than ever to focus on spending cuts.
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There is some other good news (if you buy it). By the end of the coming decade, debt held by the public would total 80 percent of GDP: 11 percentage points below the debt-to-GDP ratio projected in CBO’s baseline.
But as CBO notes, this is due to the adminstration’s hopeful growth estimates…
“The deficits that CBO estimates would occur under the President’s proposals are larger than those estimated by the Administration. Nearly all of that difference arises because the Administration projects higher revenue collections—stemming mainly from a projection of faster economic growth”
The deficit reduction under the President’s proposals would stem from lower spending.