Source: The Wall Street Journal
President’s appetite for stimulus comes up against budget realities and some fellow Republicans
President Trump’s stated goal for more spending on infrastructure appears out of step with GOP elected officials.
For an economy that isn’t in recession, the U.S. is facing one of the bleakest fiscal outlooks since World War II. One question that President Donald Trump will soon have to decide: How much is he willing to embrace even wider deficits?
The answer will determine whether Mr. Trump’s domestic agenda lives up to markets’ bold expectations, and his own.
Before Mr. Trump does anything, growing budget deficits are already on a course to push federal debt to record levels as a share of gross domestic product. That will make it extremely difficult to make good on promises to cut taxes and boost spending without spilling more red ink.
Unlike past periods, deficits are swelling not because of an economic downturn or a short-term boost in discretionary spending, but because of the costs of caring for an aging population. Medicare and Social Security are the biggest projected drivers of spending. Ten years ago, some 6,700 Americans turned 65 every day. The number is now 9,800 Americans, and it will rise to 11,700 by 2026. Den Rest des Beitrags lesen »