Thanks to Trump's deregulation of businesses, the tax cuts he obtained, and the confidence born of those factors, unemployment was extremely low, investment was up, and the economy was roaring ahead. Then came the pandemic and an economic shutdown the likes of which we haven't seen since the 1930s.
In April, U.S. government debt exceeded $24 trillion, already more than last year's GDP. Last week the Congressional Budget office projected that our 2020 debt would be at least 101% of our GDP. Economics is a Dark Art, like mixing potions and chanting spells, but there are some relatively clear means to judge an economy's health.
Our underlying economy is still exceedingly strong, but the longer businesses are shut down, the longer it will take to recover.
One of the ways to judge an economy's health is to look at the interest it has to pay every year on its debts.
Too much debt produces too much in interest payments and weakens the economy substantially.
If Congress continues to flood our economy with spending, we have to expect that despite our underlying economic strength, holders of U.S. debt - including China - will cause our economy to shrink further and the dollar to become weaker.
Perhaps the biggest factor weighing against more stimulus spending is the fact that prosperity isn't the result of government spending.
https://spectator.org/close-the-spending-floodgate/
In April, U.S. government debt exceeded $24 trillion, already more than last year's GDP. Last week the Congressional Budget office projected that our 2020 debt would be at least 101% of our GDP. Economics is a Dark Art, like mixing potions and chanting spells, but there are some relatively clear means to judge an economy's health.
Our underlying economy is still exceedingly strong, but the longer businesses are shut down, the longer it will take to recover.
One of the ways to judge an economy's health is to look at the interest it has to pay every year on its debts.
Too much debt produces too much in interest payments and weakens the economy substantially.
If Congress continues to flood our economy with spending, we have to expect that despite our underlying economic strength, holders of U.S. debt - including China - will cause our economy to shrink further and the dollar to become weaker.
Perhaps the biggest factor weighing against more stimulus spending is the fact that prosperity isn't the result of government spending.
https://spectator.org/close-the-spending-floodgate/
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