Trump has disregarded the deficit, a key campaign promise.

[squatz1]

While this isn't fully Bitcoin related, I still did think that this topic did require some sort of conversation. Just as a note, I'm going to be posting this thread here and in the P&S section for maximum visibility. I do hope that's fine.

Here's the quick and simple summary of all of this: The US deficit is soaring in the Trump era, as it reached $984B in 2019. This was fueled by spending increases, and tax cuts.

But lets take a walk down memory lane, when Republicans used to care about spending and Democrats even went across the aisle to help out as well. In 2011, the GOP House of Rep pushed for a Balanced Budget Amendment -- pretty much forcing the government to have a balanced budget every year. Due to this, the Obama Administration tried to cut back back on spending and had done a good job at a certain point. There is a bit of leeway you have to give the Obama administration though, given that they controlled the executive during a time of a recession they obviously would have a higher deficit then most presidents.

Trump had even promised to fight the Debt and the Deficit, but nothing has come out of this. Trump rarely mentions it anymore, as it's a losing game for him. Republicans ignore it as they know going against Trump is political suicide -- and Democrats mention it here and there but it's not enough.

Both sides are hypocrites -- only caring about problems when the other side is causing it. Democrats only carea about deficits when Republicans are doing it, and Republicans only care about deficits when Democrats are doing it.

We shouldn't kick the can down any longer. We must focus on the deficit and the debt and focus on it now, instead of trying to focus on it when it's too late and the next generation is saddled with something that has spiraled too far out of control.

Sources:
https://www.washingtonpost.com/business/2019/10/25/us-deficit-hit-billion-marking-nearly-percent-increase-during-trump-era/
https://www.thebalance.com/us-deficit-by-year-3306306
https://apnews.com/caeb6d6c4eff45e4bc5da12db06004bc

[Hydrogen]

If I remember right. George Bush increased the deficit by $5 trillion. Obama succeeded him and increased the deficit by $10 trillion.

We had a massive expansion of the deficit on our hands and the media completely ignored it.

Nothing was said about the deficit until Trump was elected. Now the media which completely ignored Bush and Obama is crucifying Trump for expanding the deficit far less than his predecessors did.

Its a shady and bizarre situation.

[alyssa85]

The American economy is still recovering from the Great Financial Crash. It needs to consistently grow over 4% per annum to generate enough tax revenue to close the deficit.

Unfortunately it's growing at about 2% per annum. I think Trump managed a couple of quarters at 4% but growth then slowed again. They're not helped by the rest of the world - Germany for example is growing at 0.5% per annum, which is near recession - it's stagnation. Until everyone is growing fast, there is no hope of any government reparing it's finances.

[squatz1]

If I remember right. George Bush increased the deficit by $5 trillion. Obama succeeded him and increased the deficit by $10 trillion.

We had a massive expansion of the deficit on our hands and the media completely ignored it.

Nothing was said about the deficit until Trump was elected. Now the media which completely ignored Bush and Obama is crucifying Trump for expanding the deficit far less than his predecessors did.

Its a shady and bizarre situation.

That's not true in the least though. Debt spending has come up time and time again though. Clinton had a balanced budget and Bush didn't get reelected because he raised taxes so they didn't have a deficit. The voters did care about this at somepoint, but not today.

Even during the Obama presidency -- as I said before, Republican members of the House had tried to push for a balanced budget amendment and Obama had started to look at ways to reduce the deficit.

That used to be a common criticism of Obama, that he didn't care about the deficit. But now that Republicans run the show, they don't care anymore because the deficit is being spent on the things they like -- tax cuts, increased military spending, etc.

[CryptoBry]

If I remember right. George Bush increased the deficit by $5 trillion. Obama succeeded him and increased the deficit by $10 trillion. We had a massive expansion of the deficit on our hands and the media completely ignored it. Nothing was said about the deficit until Trump was elected. Now the media which completely ignored Bush and Obama is crucifying Trump for expanding the deficit far less than his predecessors did. Its a shady and bizarre situation.

You nailed it, brother! While deficit and increasing spending should always be big issues on any administration Democrats or Republicans at the helm, those can be relegated to the background when people are more interested with politics and the survival of the select elite they are electing to office. We know that Trump is not the perfect president and not the type that the media would really love but many times people are being blinded with issues especially when the whole mainstream media are very much biased against him. What is clear here is that no admins ration can ever reign on deficit problem and since nobody would want to curtail on spending, this situation can be going on for many years and there is no clear solutions in sight. Well, maybe until a horrendous economic disaster can take place. As what we know, when we fail to learn the lessons of history then they are bound to appear again and again like an apparition.

[abhiseshakana]

The budget deficit is a situation of spending greater than income in terms of state finances.

If the budget deficit in the United States increases, there are simply two possibilities:
- Government revenue / revenue is not in line with the target
- There is an additional expenditure realization

https://www.thebalance.com/us-deficit-by-year-3306306

Referring to the data above, the US budget deficit is caused by not meeting the target income from the tax sector. Although many people protest against Trump's policies which are considered irrational, but with a business background, Trump understands what is needed by the business world and a country's economy. Once Trump cuts taxes the effect immediately spreads. Although on one hand the state revenue is reduced from the tax sector, on the other hand it makes the company's revenue higher and investment returns increase. With increased investment from the business world, employment is increasing so that more people who earn income can spend their money.

The tariff war with China was also used by Trump to increase state revenues despite an economic slowdown but the country's revenue from import duties increased. Tariff application is deliberately done by Trump to limit imports so that it can trigger domestic production.

Besides Trump is a president full of controversy, controversy is identical to independence, it also shows the level of government confidence to minimize the adverse effects of the controversial policies taken. The controversial policy is synonymous with iron fist and military power. this is what causes the US Military budget to increase with Trump's security defense policies including building a border wall with mexico to tackle illegal immigrants, prioritizing destroying ISIS, allowing Japan and South Korea to have nuclear weapons, cultivating and embargoing Iran, blocking asylum requests from seven countries & Acknowledge Jerusalem as the capital of Israel.

Budget deficits that arise as a result of government policy will become a burden on the government in the future. The budget deficit faced by the Trump administration is due to the policy transition from the Obama Administration.

[exstasie]

Trump had even promised to fight the Debt and the Deficit, but nothing has come out of this. Trump rarely mentions it anymore, as it's a losing game for him. Republicans ignore it as they know going against Trump is political suicide -- and Democrats mention it here and there but it's not enough.

Surprised? I'm not. I knew he'd act like any other politician and maintain the status quo.

Both sides are hypocrites -- only caring about problems when the other side is causing it. Democrats only carea about deficits when Republicans are doing it, and Republicans only care about deficits when Democrats are doing it.

It's a broken system. Politicians are only concerned about getting reelected next term. They don't give a shit about long term sustainability. Popular sentiment just swings back and forth depending on who's in power and nothing substantive ever really changes.

How will this get resolved? The US will default someday, of course.

[alyssa85]

It's a broken system. Politicians are only concerned about getting reelected next term. They don't give a shit about long term sustainability. Popular sentiment just swings back and forth depending on who's in power and nothing substantive ever really changes.

How will this get resolved? The US will default someday, of course.

I'm not so sure. The last time the US defaulted was in the 1790's after the French revolution (they refused to repay loans that the French King had made to them on the grounds that the king was gone and thus the debt was wiped out, they claimed the new French state was "different").

But ever since that infamous episode, they've paid all their debts faithfully. In other words they've been good for over 200 years. Only the UK and Switzerland have a longer record of paying debts.

[quarkfx]

large deficit is from china I think and if America does not put a full stop to this deficit it will gradually decline from superpower and china will take its place , trump is doing good as trade deals get done deficit will surely decrease , large trade deficit is with china and Europe and a trade deal with both should be must

[Blitzboy]

If I remember right. George Bush increased the deficit by $5 trillion. Obama succeeded him and increased the deficit by $10 trillion.

I don't remember Obama's deficits, the only thing I can remember is that he was the best president. For what he has done for the United States and the world, he deserves any compliments, rather than criticism. But for Trump, I really have no sympathy, I don't know what will happen next, but obviously it's not positive for the US economy.

[Febo]

If I remember right. George Bush increased the deficit by $5 trillion. Obama succeeded him and increased the deficit by $10 trillion.
We had a massive expansion of the deficit on our hands and the media completely ignored it.
Nothing was said about the deficit until Trump was elected. Now the media which completely ignored Bush and Obama is crucifying Trump for expanding the deficit far less than his predecessors did.
Its a shady and bizarre situation.

I dont see any bizarre here. Trump said he will reduce deficit. No one before him said that. He did not do it. That is bizarre. Saying something and not do it.   But on other hand more bizarre are suckers that trusted Trump to not expand deficit.

[beerlover]

As long as a nation doesn't tax their super wealthy there is no way they could balance the budget properly, there is a certain amount of money you can collect from the poor and the little middle income that is left, so all in all as long as USA gives tax cuts to big corporations the deficit will continue. Amazon paid zero in federal taxes for example, as long as you allow those companies to get away with these there is no way you can remove the deficit.

Trump LOVES the billionaires, Bernie Sanders collected over 34 million dollars from 5 million people and he is still quite far behind Trump who got over 100 million dollars for campaign donations most of which came from billionaires and companies in order to keep him there since they know if democrats take over the executive branch they will start taxing the corporations heavily.

[exstasie]

How will this get resolved? The US will default someday, of course.

I'm not so sure. The last time the US defaulted was in the 1790's after the French revolution (they refused to repay loans that the French King had made to them on the grounds that the king was gone and thus the debt was wiped out, they claimed the new French state was "different").

But ever since that infamous episode, they've paid all their debts faithfully. In other words they've been good for over 200 years. Only the UK and Switzerland have a longer record of paying debts.

Technically the US partially defaulted in 1979. The Treasury was unable to make payments on maturing T-bills in April and May of that year: https://www.forbes.com/sites/beltway/2013/10/08/actually-the-united-states-has-defaulted-before/#1f1604716021

We may not have reached 1970s (or 1790s ) levels of financial uncertainty yet, but we're getting there, and the stakes will be bigger this time.