Monday, May 29, 2017
Trump Budget Is NOT A Job-Creator - It's A Job-Killer
Donald Trump has released his proposed budget for this country. He claims it will spur the economy to more than 3% growth, and create a massive amount of new jobs. It won't.
His budget takes billions of dollars out of the economy through huge cuts to almost all domestic programs. When money is taken out of the economy, it means there is less money to be spent on goods and services (which drives our economy) and that reduces demand, which slows economic growth -- and if too much money is taken out of the economy, then the economy goes into negative growth (i.e., recession). Slower growth does not create new jobs, and negative growth actually kills millions of jobs.
Trump says he will counteract the effect from taking money out of the economy by then giving massive new tax cuts to the rich and the corporations. He wants us to believe this will increase demand and produce new jobs. It won't. The recipients of those tax cuts already have enough money to buy whatever they want, and giving them more money won't increase demand -- it will just fatten their bank accounts with having any effect on demand at all.
To be blunt, a belief in unicorns makes more sense than belief that the Trump budget will be a job-creator. It won't. It will be a job-killer.
This is how Josh Bivins and Hunter Blair of the Economic Policy Institute describe the effects of the Trump budget. It's worth reading.