Trump’s Budget: Radical Change or More of the Same?

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President Donald Trump’s proposed budget has generated hysteria among the American left. Prominent progressives have accused the president and his allies of wanting to kill children, senior citizens, and other vulnerable Americans. The reaction of the president’s allies — including some conservatives who should know better — is equally detached from reality as they hail Trump for launching a major assault on the welfare state and making the hard choices necessary to balance the budget.President Trump’s budget does eliminate some unnecessary and unconstitutional programs such as the Overseas Private Investment Corporation, and the National Endowment for the Arts. However, it largely leaves the welfare-warfare state intact. In fact, this so-called “radical” budget does not even cut domestic spending! Instead, it plays the old DC game of reducing “the projected rate of growth.” For example, under Trump’s budget, Medicaid spending increases from $378 billion this year to $525 billion in 2027. Only in the bizzaro world of Washington, DC can a 38 percent increase be considered a cut.

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President Trump’s budget combines phony cuts in domestic spending with real increases in military spending. Specifically, the budget increases the military budget by $23 billion over the next ten years. Trump claims that the increase is necessary to reverse the damage done to our military by sequestration. But, despite the claims of the military-industrial complex and its defenders in Congress, on K Street, and in the media, military spending has increased over the past several years, especially when the “off-budget” Overseas Contingency Operations funding is added to the “official” budget.The restrained American Frist policy promoted by candidate Trump does not require a large and expansive military that literally spans the globe. This budget is the latest indication that President Trump is embracing the neocon foreign policy that candidate Trump correctly denounced.

The budget also relies on rosy scenario economic projections of three percent growth without even a mild economic recession to justify the claim that the federal budget will achieve balance in a decade. This claim bears little or no resemblance to reality.

It certainly is true that some of Trump’s proposed tax and regulatory reforms can increase economic growth. However, the benefits of these pro-liberty policies will not offset the continued drag on the economy caused by the continued growth of federal spending, and the resulting monetization of debt by the Federal Reserve. Far from bringing about endless prosperity, Trump’s big-spending budget increases the odds that Americans will face a Greece-style crisis in the next few years, while the Federal Reserve’s inflation tax evaporates the benefits of any tax reductions passed as part of tax reform.

Some of President Trump’s apologists claim his proposed $1 trillion infrastructure spending plan will help create jobs and grow the economy. But government spending programs do not create real wealth; they only redistribute resources from the private sector to the (much more inefficient) government sector. Therefore, any short-term gains from these programs are illusionary and outweighed by the long-term damage the expansion of government inflicts on the economy. Trump’s proposed new parental leave mandate will also hurt the economy, as well as the job prospects of the new entitlement’s supposed beneficiaries.

Far from presenting a radial challenge to the status quo, President Trump’s budget grows the welfare-warfare state, albeit with more emphasis on the warfare. This budget is thus more evidence that, for a pro-liberty political revolution to succeed, it must be preceded by an intellectual revolution that reignites the people’s desire and demand for liberty.

 

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11 Comments
rhs jr
rhs jr
June 5, 2017 11:29 am

Trump is doing more than anybody else! The Vampire Squid’s roots are everywhere and deep; we all need to destroy what we can of it and pray God help US and Trump.

fleabaggs
fleabaggs
  rhs jr
June 5, 2017 12:19 pm

rhs.
BULLSHIT. Drink some more cool aide from mainstream info sources.

TampaRed
TampaRed
  fleabaggs
June 5, 2017 1:27 pm

Baggs,
What electable person would be doing better then him at this time?

fleabaggs
fleabaggs
  TampaRed
June 5, 2017 1:40 pm

Red.
None. Thats my point. Trump is just a new flavor of cool aide. Chipping away at this won’t happen. Anything he chips away is put back somewhere else.
Reminds me of the 90’s when Gindrich and gang with Billary claimed to balance the budget. They pushed it forward into this century and now it’s due.

rhs jr
rhs jr
  fleabaggs
June 5, 2017 2:53 pm

We are in a “war” with the Left and thank God a Republican horse won the election and is now carrying a heavy load. I believe we should put on our fighting gear and volunteer for any mission that helps. Fleabaggs would mutiny because he isn’t pleased. That’s equivalent to an inconsiderate bossy back-stabbing Feminist wife who wants to throw her hardworking faithful husband under the bus. Things would certainly really go to Hell fast then.

Fleabaggs
Fleabaggs
  rhs jr
June 5, 2017 5:59 pm

Rhs
A card carriying establishment Republican hack and Trump lover who relies on establishment sources for info telling a guy who has been on the front line of the Patriot/Liberty movement for 50 years he will mutiny. Now ain’t that just somethin.

Iska Waran
Iska Waran
June 5, 2017 11:29 am

Good column, esp the last sentence.

starfcker
starfcker
  Iska Waran
June 5, 2017 12:11 pm

Terrible column. Sour grapes, Dr Paul. You should have voted for hillary.

Anon
Anon
June 5, 2017 1:02 pm

Good column on reality, HOWEVER, where was Dr. Paul all those years when he was a member of “the swamp”? All this logic, now that he is out, but little in the way of action when he was within the belly of the beast.
Same problem I have with Trump. When he was outside, looking in, logic and common sense seemed to be coming out, now, it is all neocon and GOP talking points and BS. What the hell happens when someone gets elected to public office in this country? Are they given a talk, and shown the Zapruder film? Are they shown a picture of a dear family member and told the rules?
I am just to the point, as I am sure most on here are, that I listen to ANYTHING emanating from government with the filter of “how is this going to hurt me, and how do I either circumvent its effect on me, or how do I defend myself and prepare for it.” That’s it. Because with few if any exceptions, the people in Washington, and most local and state government seem to be an occupying force, hell bent on strip mining every single productive citizen of this nation, for anything of value, and then more if they can squeeze it out.
This budget nonsense is absolutely meaningless until the Fed can no longer print money. Period. Businesses and individuals need to do budgets due to the fact there is scarcity and value to the currency coming in, and must be allocated according to priorities. When you can print monopoly money, and commit armed robbery for the rest, what is the point of a budget other than to make the sheeple “feel” like they are being represented? What scarcity, and necessity of allocation priority is there when you can just create more out of thin air if the resources run out? It is ALL bullshit, every single utterance, and the sooner that reality sinks in to the populous of this nation, the sooner we can be on our way to a fix.

fleabaggs
fleabaggs
  Anon
June 5, 2017 1:27 pm

ANON.
My exact sentiments.
As for being given “The Talk” coming out of the meeting white faced. I’ve heard this said about every president since Tricky Dickie. Each side takes turns saying it about their guy as an excuse for more of the same.

rhs jr
rhs jr
June 5, 2017 1:35 pm

One day soon the government will be wildly printing away to satisfy the FSA and the Warmongers; but the fiat green paper will become more worthless the faster they print, just like every other fiat currency that has ever existed. It will be a disaster for America and could have been prevented with a Balanced Budget (or one even close). I wish Trump could do even better faster but I’m damned glad Harpy lost and Trump is trying to MAGA. He needs our criticism but also our support and prayers.