Blue Press Journal

Tag: debt

  • Economists Warn of Imbalance as Trump Cheers Stock Market Success

    by Winston Wendell

    Despite Trump’s optimism about the US economy, there are growing concerns about the gap between main street and wall street. In recent months, the stock market has seen a three week long rise. This has put the S&P 500 close to a record high which Trump is quick to point out as proof of his economic genius, especially when it comes to those with retirement plans. But many would say that the market’s success is misleading given the state of the economy for most Americans.

    Busy stock exchange trading floor beneath electronic market index boards

    “The economic realities for most Americans are not nearly as positive as suggested by the president,” said Laura Tyson, a former Chair of the President’s Council of Economic Advisers for President Clinton. “While the stock market is doing well, wages are not keeping pace with inflation, therefore most Americans are not seeing an increase in their purchasing power.”

    According to the latest report from the Labor Department, July saw an unexpected decrease in the number of new jobs. Although wages are rising, they are not keeping up with the increase in the size of the economy. The result? Average living standards for most of the population are actually dropping.

    The impact of these numbers are being felt most by Americas’ middle and lower classes who are living from paycheck to paycheck. Credit card debt has skyrocketed as families with low wages are forced to use their savings or charge purchases to cover essentials such as groceries, housing and healthcare. Added to all this the price of electricity alone has jumped 12 percent since Trump took office, leaving many households struggling to pay their bills.

    “Most people in America are not benefiting from the dramatic rise in profits of the large companies in the S&P 500, many of which are in the healthcare and energy industries,” said Joseph Stiglitz, a Nobel Prize-winning economist. “This imbalance cannot be beneficial to America’s future as it breeds social unrest amongst many groups due to growing inequalities in income and wealth.”

    As Trump promotes the success of the stock market, many are concerned about the health of the American economy. Although those on the top of the economic ladder are enjoying the best increase in wealth in five years, many others are finding life as a middle class family becoming harder and harder to manage.

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  • The Republican Debt Bomb: How Trump and the GOP are Adding Trillions to the National Debt

    Despite their oft-expressed outrage over the country’s borrowing habits, Republicans appear to be adding another massive, multi-trillion-dollar slab onto the national debt. President Donald Trump and Republican majorities in both chambers of Congress have voted to erode the tax base even further, increasing annual deficits and sending the federal debt to historic highs.

    When Trump took office in 2017, he inherited a robust economy with low unemployment. However, his decision to implement a big tax cut has generated $1 trillion-a-year budget deficits. According to the non-partisan Congressional Budget Office, the anticipated new debt already projected by the time Trump began his second term in January totaled some $7 trillion. This was before his new legislation added an additional $3.4 trillion to the debt over the coming decade.

    By the time Trump is constitutionally required to leave office in 2029, the national debt will likely be a staggering $45 trillion, with Trump himself having contributed $18 trillion of it over two terms. This is a far cry from the fiscal responsibility that Republicans often claim to champion.

    It’s worth noting that Trump’s tax cuts, which he and his followers claim are the largest in history, are actually smaller than those implemented by Ronald Reagan in 1981. Reagan’s tax cuts totaled 2.9% of the nation’s GDP at the time, while Trump’s 2017 cuts were about 0.7% of GDP. George W. Bush’s 2001 and 2003 cuts fell somewhere in between, at 1.3% of GDP.

    What’s more, while Reagan is often remembered for cutting taxes, he also raised them repeatedly during his time in office. In fact, he raised taxes a total of 11 times over his two terms, including the Tax Equity and Fiscal Responsibility Act of 1982, which was among the largest tax increases in U.S. history.

    The consequences of the Republican debt bomb are stark. In the final years of Clinton’s second term, the debt-to-GDP ratio was shrinking, and actually paying off the national debt seemed within reach. However, the GOP’s addiction to tax cuts and spending increases has put those days behind us. The national debt is now projected to balloon to unprecedented levels, threatening the country’s economic stability and leaving future generations to foot the bill.

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