
IPFS News Link • Economy - Economics USA
David Stockman on the Coming US Election and What It Means for America's Fiscal Future
• https://internationalman.com, by David StockmanThere is simply not a snowball's chance in the hot place that either the Trumpified GOP or the beltway blob-controlled Democrats will lift a finger to deflect America's fiscal doomsday machine from its appointed rendezvous with disaster.
The latter stems from the UniParty's bargain with the fiscal devil. It amounts to a coalition of convenience dedicated to the fierce perpetuation of the fiscal status quo at all corners of the budget.
For its part, the Trumpified GOP now says it will no longer be accused by the Dems of planning to throw granny out into the snow. Instead, its very own party platform now says no cuts from Medicare or Social Security. Not even a single thin dime is to be squeezed from what will be the staggering $36 trillion cost of these two programs over the next decade.
That's right. Neither wing of the UniParty will now even utter the words entitlement reform or spending cuts in the same sentence with Social Security, which alone will cost $20 trillion over the next decade, or Medicare, which will clock in at $16 trillion.
The GOP also reiterates its long standing refrain of no tax increases in any way, shape or form. In fact, it calls for an extension of the expiring Trump tax cut (2025) at a deficit cost of $4.5 trillion over the next decade.
Such an extension, however, would bring down Federal revenues to an average of just 16.5% of GDP—the lowest level since the 1950s. And, no, it won't even out in the wash of higher "growth" either because CBO's Rosy Scenario already assumes loads of cumulative real growth owing to no recession or any other economic upset for the next 10-years. Effectively, CBO's 2.0% real growth with no recession for a decade is the same thing as 3.0% growth interrupted by a normal cyclical downturn and recovery.