May 15, 2017
The Trump tax plan may be a fiscal calamity in the making. Along with new spending on infrastructure and defense, ten trillion dollars of deficits are projected over the next ten years. It’s thought that rosy projections of wage and GDP growth will close the gap. However, when money is borrowed out of the economy to fund the deficit, it crowds out the private sector. This money would be used by businesses and entrepreneurs to create goods and services to benefit consumers and grow the economy. Government spending gets directed towards special interests, politicians and their cronies and into projects that the private sector would never fund.