U.S Debt Pushes $22 Trillion
Why Trump’s Tax Cuts Were Poorly Timed
It was revealed this week that the U.S government is $22 trillion in debt. Despite the record low unemployment rate and an overall hot economy, the U.S budget deficit continues to grow. This is due in large part to President Trump’s tax cuts have added nearly $800 billion to the deficit.
The total debt has risen by nearly $2 trillion since Trump took office and is currently projected to hit $27 trillion in the next five years. The U.S has already had the eighth highest debt per capita in the world prior to this new data being released, and it would not be surprising if it continues to move up that list.
A quick reminder for those who are interested. The deficit refers to how much money the government needs to borrow in a single year and the debt refers to the total amount of outstanding debt owed by the government.
The Fiscal Stimulus No One Asked For
As mentioned, a lot of this new debt is due to the Trump tax cuts from last year which greatly reduced the tax revenue brought in by the federal government.
The tax cuts were justified largely as a stimulus to the economy. That naturally raises two questions;
- Are these tax cuts an effective way to stimulate…
