Former Federal Reserve head Janet Yellen said last week that she’s worried about the Federal deficit. She says current government spending is unsustainable. And, Yellen said, she’d raise taxes if she had a “magic wand.”
Well, I’m also worried. And Yellen is absolutely right.
But let’s parcel out the blame. The US debt level rose by $8.59 trillion from 2010 to 2017, according to HowMuch.net. That was on President Obama’s watch. And while Yellen wasn’t in charge of federal spending, she deserves some of the blame for the economy during half of those years.
US debt is now nearly $21.7 trillion, and it’s growing fast. It will grow even faster when interest rates rise and the government has to spend more to borrow.
With his tax cuts, Trump is expected to add $4.78 trillion to the debt between now and 2021. So he’s to blame also. And if the economy doesn’t respond massively to his tax cuts, Trump will be very much to blame.
I love it when former government officials like Yellen suddenly grow a conscience and start lecturing when they are out of office and have no power.
My idea for the economy was still better: Forget the tax cuts. Stimulate the economy by changing the rules on how people can use their retirement accounts. That would have helped the economy and not cost Uncle Sam a nickel. In fact, it would raise revenue for Washington.
Oh well, our elected officials decided to do it their way. Let’s see what happens. Maybe someone should be writing a song titled “God Help America.”
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