Us Budget Botches Subtraction and Multiplication
The U.S. budget is replete with dollars that don't equal a dollar, as some are worth far more, which only further distorts the math used to justify spending cuts. The proposed tax cuts would extend $4.5 trillion in tax savings over 10 years, but most of these benefits accrue to wealthier individuals rather than being spent, and there's little evidence to support the trickle-down effect promised by Trump and generations of Republicans. The plan aims to slash $1.5 trillion in expenses over the next decade, including $880 billion from Medicaid spending.
- This shortsighted approach neglects the economic multiplier effects of government spending, where every dollar invested leads to a disproportionate increase in output.
- Will the U.S. ever achieve fiscal sustainability if it continues down this path, which seems to be driven by ideology rather than evidence-based policy?