Tuesday, April 22, 2025

Cut the fat

A typical congressperson is between a rock and a hard place. They recognize that deficit spending in the long term is detrimental to the economic health of the country but they are unable to take the steps necessary to solve the problem. If they propose cutting some benefit to their constituents, they will be primaried and lose the next election. If they propose new benefits they will be reelected. To propose new benefits without increasing revenue means adding to the debt. The common solution is to tax the rich but the rich control much of the campaign financing. The best way out, is to offer new benefits and pay for these by cutting the fat but it must be some body else fat, as witnessed by the opposition to DOGE. Trump is willing to stick his neck out because he is a one term president but the rest of the bureaucracy is not so willing and he cannot succeed without help. His program will likely result in lots of turmoil for a while and then everything will return to the old ways. The country will survive and grow because of the reshoring of manufacturing. The country will grow in spite of the government. It is growth that offers the chance to reduce the deficit but there will be the congress who will want to use any new revenue, to provide more benefits not to apply to the debt. This takes things back to the beginning rock and hard place.

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