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Archive of posts published in the tag: deficit

The Post Covid Economy

When the vaccine is implemented and the pandemic is behind us, there will a powerhouse of pent up demand that will propel a booming recovery. Tax revenues will grow accordingly even without a tax rate increase, but there is a downside.

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An Addiction to Low Interest Rates

It seems that this can go on indefinitely because we cannot envision the central banks losing control of interest rates, but absence of evidence is not evidence of absence. Believers in Modern Monetary Theory mistake this trend for a true principle. Central banks will remain active in controlling interest rates because the debt is so large that any spike in interest rates would be disastrous. We are stimulating a zombie economy reliant on low interest rates provided by a central government even more dependent on low interest rates.

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It’s the Entitlements, Stupid

“The long run budget problem has essentially nothing to do with the Trump tax cut. It has been brewing under Bush, Obama, and Trump. It fundamentally comes from growth in entitlements an order of magnitude larger. “

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Trump Builds only Half a Bridge

Treasury Secretary Steve Mnuchin has expressed approval for a weaker dollar.  Trump is promising higher tariffs.  These moves threaten to undo the benefits of his work on tax cuts and regulations.

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Everything is not Enough

Justin Hohn writes in American Thinker How Much Taxation Would Fund Current Spending?, 12/12/12 Excerpts: Using 2009 data, the IRS says that 8,274 tax returns were filed with incomes over $10 million.  The total amount of income on those returns was $240.1 billion.…

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The Magical Fed

The poor business environment is driving down wages and costs, but inflation looms because of the government’s record deficit.  Record low interest rates are not having the desired effect because the recession is more due to political policies than economic.…

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