The good news is that Republicans on Capitol Hill are already talking about spending cut options for 2025. The vehicle for cuts will likely be a reconciliation package, which can be passed with a simple majority in the Senate. Such packages allow cuts to non-Social Security mandatory programs, which currently total about $2.6 trillion in the annual federal budget.
President Reagan enacted major spending cuts in a reconciliation package seven months into his first yearâthe Omnibus Budget Reconciliation Act of 1981. The cuts totaled $131 billion over three years, the equivalent of $1.1 trillion today when compared as a share of gross domestic product (or about $3.6 trillion over the ten-year budget window). That would be a good-sized package for the GOP to enact next year. Reagan matched his 1981 budget cuts with pro-growth tax reforms signed into law the same day, which is a model that President Trump should follow.
My comment today we are entering demand side econ and leaving supply side econ parts of the cycle.
If Market Yields in the US soar that will add another cause for deflation.
âPro-growthâ, in my experience, has always been a euphemism for making the rich richer. What have the âJCsâ done with all their loot from tax cuts? Build factories abroad? Take pay and benefits away from their USian workers?
Liz didnât last longer than a head of lettuce as PM. We donât have the sensible no confidence vote to remove our head of state.
The trick is to take away from a minority, not the majority. Think about all the loot the government could confiscate from all the millions they say they will deport. In the late 30s, something like 20-25% of the German federal budget was funded with the loot seized from people who had been deported, or tossed in a camp.
We do hear of plans to trim unspent funds in the Inflation Reduction Actâinfrastructure and green projects. Trim EV subsidies. NIH research. Education Dept. Student loan subsidies. Other education projects?
Reclaim unspent Covid funds. Many payments long delayed. Govt units like St Louis still debating how to spend the funds.
At the same time, our system lends itself to more stability. For example, Obama would have been out of office after the 2010 elections switched control of the House.
It was not much of an issue in the UK. Her follow up was her finance minister or whatever he was. He faced elections later. He lost badly. The election was more important but Truss was roundly rebuked.
Here expect a massive rebuke. TFG is not in office. This is the most powerful he gets. It is a massive down hill slide national news at 6. The clickbait is being sharpened.
We gave TFG a chance on Nov 5 already. Time to move on.