CDZ Simple Math and the Deficit

[william the wie]

How has the left come up with the exploding deficit talking points meme?

The Trump economic agenda includes some real problem areas:

His love of tariffs. Designed to induce Foreign Direct Investment it will also operate as a means of brain drain and capital drain from the rest of the world. This will work to create double or even triple digit GDP growth. That will also create bubbles like the mini-bubble in the stock market just past. We will have many other bubbles and busts as well.

Seeing illegals as a revenue source. As non-citizen possible gang members they can be wire tapped without much, if any, constitutional blowback. ICE, AFT, IRS Coast Guard and DEA RICO cases should be net revenue generators and cause a lot of self-deportation to Canada and Latin America. Taxing remittances is another probable way to increase revenues from illegals as long as they last.

The Blue Wall blowing up. The deduction caps on mortgages and SALT will discredit the Ds as their current strongholds collapse due to Fed rate hikes.

Wage push inflation has already begun in the Red edge. It will get worse and that means rate hikes as far as the eye can see. Because of wage push inflation and an increasing tax base the red states will be annoyed but not seriously threatened by the rate hikes. The blue and purple states will start flipping red and vice versa to at least some extent but the number of seats will not change until 2022. A rather ruthless way to get reelected but it should work as the Ds will own this Blue wall disaster.

But Debt and deficit growth? Assuming the normal assumption of a multiplier of 5 repatriation of $2T will increase GDP by more than 50% by itself. Foreign Direct Investment (FDI) should be even larger. That will cause budget surpluses

 

[task0778]

All I know is, in less than 10 years and at the current rate of rising debt and interest rates we're going to be spending nearly a trillion dollars a year just to service the debt, and some of that goes overseas. It's called generational theft, and quite frankly I feel bad about how our kids and grandkids and those that follow will e stuck paying for our excesses. At least we could and should be trying to spend that money wisely and efficiently, but we ain't. Not even close and anyone who thinks otherwise is delusional.

Neither party has the high moral ground on this one.

 

[william the wie]

True but we are on a wild ride that will not include deficits, hang on to your wallet

 

[task0778]

True but we are on a wild ride that will not include deficits, hang on to your wallet

Not include deficits? In my lifetime? (I'm 69). I do not think we'll ever balance the budget until a depression hits us smack in the face. Like in the 1930s, and it will be ugly. And even then liberals will be screaming for more spending and higher taxes.

 

[Picaro]

The deficit is small relative to the size of our economy, so it's not nearly the big giant problem ideologues make it out to be. The point that govt. spending isn't efficient is a good one, though. Nothing will change that except a massive decades long anti-corruption campaign, like the one began by Singapore's oligarchy in the 1960's and still enforced today. that isn't going to happen, since the Federal govt. and our politicians do indeed represent and reflect the morals and honesty of the American people, as all govts. are reflections of the cultures they exist in, sad to say.

One of the best ways to keep it under control, or make it disappear altogether, is to follow one of Henry George's key platforms, a Federal real estate tax, and a modern modification of his premises, a tax in intellectual property our education and Federal research spending produces. A lot of the Federal spending is based on maintaining the security and value land, so it should be taxed to cover all that, for one; no more letting freeloading hogs buy up large tracts of land for next to nothing and then get rich for merely sitting on it doing nothing when it goes up in price, for instance.

 

[william the wie]

True but we are on a wild ride that will not include deficits, hang on to your wallet

Not include deficits? In my lifetime? (I'm 69). I do not think we'll ever balance the budget until a depression hits us smack in the face. Like in the 1930s, and it will be ugly. And even then liberals will be screaming for more spending and higher taxes.

True as far as it goes but you are ignoring facts:

Sanctuary states have a much heavier fiscal drag than non-sanctuary states.

Deportation of illegals will allow higher wages.

GDP growth will hit double digits possibly before the mid-terms. Unanticipated growth reduces the deficit and national debt.

 

[danielpalos]

True but we are on a wild ride that will not include deficits, hang on to your wallet

Not include deficits? In my lifetime? (I'm 69). I do not think we'll ever balance the budget until a depression hits us smack in the face. Like in the 1930s, and it will be ugly. And even then liberals will be screaming for more spending and higher taxes.

True as far as it goes but you are ignoring facts:

Sanctuary states have a much heavier fiscal drag than non-sanctuary states.

Deportation of illegals will allow higher wages.

GDP growth will hit double digits possibly before the mid-terms. Unanticipated growth reduces the deficit and national debt.

a fifteen dollar an hour minimum wage will allow higher wages.

 

[william the wie]

Not needed.

 

[danielpalos]

Not needed.

It was needed more than tax cuts.

 

[Moonglow]

How has the left come up with the exploding deficit talking points meme?

The Trump economic agenda includes some real problem areas:

His love of tariffs. Designed to induce Foreign Direct Investment it will also operate as a means of brain drain and capital drain from the rest of the world. This will work to create double or even triple digit GDP growth. That will also create bubbles like the mini-bubble in the stock market just past. We will have many other bubbles and busts as well.

Seeing illegals as a revenue source. As non-citizen possible gang members they can be wire tapped without much, if any, constitutional blowback. ICE, AFT, IRS Coast Guard and DEA RICO cases should be net revenue generators and cause a lot of self-deportation to Canada and Latin America. Taxing remittances is another probable way to increase revenues from illegals as long as they last.

The Blue Wall blowing up. The deduction caps on mortgages and SALT will discredit the Ds as their current strongholds collapse due to Fed rate hikes.

Wage push inflation has already begun in the Red edge. It will get worse and that means rate hikes as far as the eye can see. Because of wage push inflation and an increasing tax base the red states will be annoyed but not seriously threatened by the rate hikes. The blue and purple states will start flipping red and vice versa to at least some extent but the number of seats will not change until 2022. A rather ruthless way to get reelected but it should work as the Ds will own this Blue wall disaster.

But Debt and deficit growth? Assuming the normal assumption of a multiplier of 5 repatriation of $2T will increase GDP by more than 50% by itself. Foreign Direct Investment (FDI) should be even larger. That will cause budget surpluses

Damn but you do dream a lot....double and triple my ass...

This low life bitch called The Don has his families consumer goods produced in China........What tariffs does his enterprises pay to cheat the US workers?

 

[Moonglow]

Your mathematics doesn't take into account variables of a radical nature since for some reason humans can't foretell the future...

 

[Picaro]

Not needed.

It was needed more than tax cuts.

I would rather have deflation adjust prices down to current rates rather than ridiculous scenes of paying for a Snickers with a $30 million dollar bill., but that's just me.

 

[Picaro]

Not needed.

It's either that or busting up the monopolies, and by extension most of the laws protecting the stock market operators. It isn't production costs driving up inflation, it's the demand for higher returns on grossly inflated capitalizations and equities valuations.

 

[william the wie]

Not needed.

It's either that or busting up the monopolies, and by extension most of the laws protecting the stock market operators. It isn't production costs driving up inflation, it's the demand for higher returns on grossly inflated capitalizations and equities valuations.

\
After 8 years of effectively zero wage growth and Obama doing more economic damage than both Bushs combined there is a lot of thrashing going on. For example if the same metrics were applied to Amazon as Walmart Bezos would see his networth shrink to less than 10% of what it is, not to mention facebook, Netflix and Apple. Google might hang in there. But there is more froth than beer in the high tech stein.

 

[danielpalos]

Not needed.

It was needed more than tax cuts.

I would rather have deflation adjust prices down to current rates rather than ridiculous scenes of paying for a Snickers with a $30 million dollar bill., but that's just me.

Social services cost around fourteen dollars an hour, anyway.

 

[task0778]

True but we are on a wild ride that will not include deficits, hang on to your wallet

Not include deficits? In my lifetime? (I'm 69). I do not think we'll ever balance the budget until a depression hits us smack in the face. Like in the 1930s, and it will be ugly. And even then liberals will be screaming for more spending and higher taxes.

True as far as it goes but you are ignoring facts:

Sanctuary states have a much heavier fiscal drag than non-sanctuary states.

Deportation of illegals will allow higher wages.

GDP growth will hit double digits possibly before the mid-terms. Unanticipated growth reduces the deficit and national debt.

Double digit GDP growth just isn't going to happen, rising interest rates will see to that.

We ain't going to deport that many illegals, nowhere near enough to make a difference in wage growth.

No argument on sanctuary states being a fiscal drag, another reason why GDP growth will not reach double digits.

When you say unanticipated growth will reduce deficits and the debt I assume you mean they will be less than forecasted by the CBO. They'll still be rising though.

 

[danielpalos]

True but we are on a wild ride that will not include deficits, hang on to your wallet

Not include deficits? In my lifetime? (I'm 69). I do not think we'll ever balance the budget until a depression hits us smack in the face. Like in the 1930s, and it will be ugly. And even then liberals will be screaming for more spending and higher taxes.

True as far as it goes but you are ignoring facts:

Sanctuary states have a much heavier fiscal drag than non-sanctuary states.

Deportation of illegals will allow higher wages.

GDP growth will hit double digits possibly before the mid-terms. Unanticipated growth reduces the deficit and national debt.

Double digit GDP growth just isn't going to happen, rising interest rates will see to that.

We ain't going to deport that many illegals, nowhere near enough to make a difference in wage growth.

No argument on sanctuary states being a fiscal drag, another reason why GDP growth will not reach double digits.

When you say unanticipated growth will reduce deficits and the debt I assume you mean they will be less than forecasted by the CBO. They'll still be rising though.

legal status cannot hide lousy public, capital policy.

 

[william the wie]

The CBO & TOMB projections are purpose built GIGO systems as in they cannot count:

repatriated funds until the repatriation paperwork and reduced tax reaches the IRS.

They can only count the Fiat and Mitsubishi construction and equipment purchases and installation costs prior to their car plants going online.

They cannot adjust for the buggy birth/death models for businesses and jobs.

So, the 9.2% of GDP repatriated investment funds that have already arrived and are being used to find the most bang for the buck for investment is not counted.

 

[Picaro]

Wage growth went negative in 1973, so it's not all Obama or Bush, it's a long term fall in wages; there has been no growth in wages. Combine this with concentrated wealth and businesses, the latter buying huge tax breaks and subsidies for themselves, and you see the problem clearly; destroy the tax base and it distorts the picture, making it look like 'entitlements' are increasing when they're actually falling like rocks in real terms right long with wages, and of course claiming SS as a 'entitlement' is a fake claim ideologues like to use by lumping it in with food stamps and the like, all number which pale in comparison with the tax subsidies that don't make it into the book keeping on govt. spending and expenditure numbers, so they can claim really high percentages of 'entitlement spending'. A tax deduction for installing solid gold sinks in your private executive bathroom doesn't show up in Federal budget spending accounting.

 

[Toddsterpatriot]

True but we are on a wild ride that will not include deficits, hang on to your wallet

Not include deficits? In my lifetime? (I'm 69). I do not think we'll ever balance the budget until a depression hits us smack in the face. Like in the 1930s, and it will be ugly. And even then liberals will be screaming for more spending and higher taxes.

True as far as it goes but you are ignoring facts:

Sanctuary states have a much heavier fiscal drag than non-sanctuary states.

Deportation of illegals will allow higher wages.

GDP growth will hit double digits possibly before the mid-terms. Unanticipated growth reduces the deficit and national debt.

GDP growth will hit double digits possibly before the mid-terms.

Dude!
Sorry to hear you're ill.....but that medical weed you're smoking appears to be excellent!!!