Government needs to increase deficit spending now more than ever. If Trump follows le "balanced budget" meme and follows Republican policies the consequences will be dire... The dollar will lose value under him in the long term.
From his "Contract with the American Voter":
SIXTH, lift the Obama-Clinton roadblocks and allow vital
energy infrastructure projects, like the Keystone Pipeline,
to move forward.
American Energy and
Infrastructure Act
Leverages public-private partnerships, and private
investments through tax incentives, to spur $1 trillion in
infrastructure investment over ten years. It is revenue neutral.
SEVENTH, cancel billions in payments to U.N. climate
change programs and use the money to fi x America’s
water and environmental infrastructure.
Also includes middle class tax breaks and tax breaks on job creators and investors so I doubt "le balanced budget" is his immediate goal.
I know, but these were his promises before. Now that he is President, with the Republicans controlling everything, it will be hard for him to deliver. I think his promised tax cuts are more likely to happen than his other plans.
Isnt it also dangerous? Like having serious debts?
Debts denominated in Dollars are private assets (think securities, bonds etc;). Since U.S is the issuer of the Dollar, the government has no problem paying its debts. I'm saying the Dollar will lose value because U.S is currently a net importer, which Trump plans to change as he ran a whole campaign on jobs going overseas.
