Economy
In this section you will be able to follow the discussion regarding the US economy, unemployment and jobs, US budget deficit, US debt burden, Government entitlements (Social Security & Medicare), and government impact on the economy (financial reform, government regulations, housing markets, and crumbling infrastructure -transportation). Since Trump's tax cut of 2017, much criticism has been about corporate stock re-purchases. These occur all the time, by the way, so it is not some unusual occurrence. In 2016, before Trump was elected, Disney bought back $7.5B of its stock. So, other than greed, why would a company buy back stock that it had sold?
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Democrats call Fitch Downgrade of U.S. Credit Rating, 'Trump downgrade'

8/3/23
from The Gray Area:
8/3/23:
Fitch Ratings on Tuesday downgraded America’s long-term foreign-currency-issuer default rating, citing ongoing and projected future fiscal instability. Democrats, in an obvious political move, jumped to defend Bidenomics...and, astonishingly, to blame Donald Trump. The 'Trump downgrade' is a direct result of an extreme MAGA Republican agenda defined by "chaos, callousness, and recklessness that Americans continue to reject,” Kevin Munoz, a spokesperson for the Biden campaign, said in a statement. “Donald Trump oversaw the loss of millions of American jobs, and ballooned the deficit with the disastrous tax cuts for the wealthy and big corporations.” They are trying to blame Trump for the COVID pandemic impact on the country, which was exaggerated by Democrat Governors. Job growth is counted as letting previously employed workers come back to their jobs after COVID, which the Biden agenda retarded and delayed with their extended COVID stimulus and regulations. Thee bad policies were followed by supply chain issues, inflation, rising interest rates, and a stock market collapse. No wonder they are indefensibly trying to target the former president. What Fitch actually said is this:
  • The tumultuous negotiations between Republicans and Democrats in June over raising the debt ceiling.
  • the government lacks a medium-term fiscal framework, unlike most peers, and has a complex budgeting process.
  • These several economic shocks as well as tax cuts and new spending initiatives, have contributed to successive debt increases over the last decade.”
  • the U.S. less reliable to honor its obligations because:
    • the Federal Reserve tightening monetary conditions via interest-rate increases to combat inflation.
    • The central bank also continues to shed its massive balance sheet of mortgage-backed securities and U.S. Treasuries,
    • The economy, the agency noted, is expected to slip into a “mild recession” in the fourth quarter of 2023.
  • Mandatory spending on Medicare and Social Security will intensify the pressure on the federal fiscal state as well, according to the CBO, Fitch cited.
  • “The CBO projects that the Social Security fund will be depleted by 2033 and the Hospital Insurance Trust Fund (used to pay for benefits under Medicare Part A) will be depleted by 2035 under current laws.
Trump was responsible for none of these issues except the tax cuts. And, when you look at deficits 'caused by the tax cuts', you see that these tax changes generated record revenues. The deficits come from out of control spending. Both Presidents are responsible for increasing US debt, but it was Bidenomics that exploded the deficit , the debt and sent the economy into a tailspin with his agenda of unnecessary and extreme spending programs. This is what the Democrats are trying to hide with such ridiculous and false allegations against Trump. Fitch is correct about the looming default of Social Security and Medicare, which neither party is willing to tackle. More From National Review:


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