Facts Should Still Matter People – Go Vote!
Not than anybody seems to care about facts these days but per Peter Baker, former White House Correspondent, in the last 21 months of the Obama Administration, the number of jobs created totaled 4,477,000 (MSNBC, November 5, 2018).
In the first 21 months of the Trump Administration, the number equaled 4,054,000.
This clearly shows that the Obama recovery continues through Trump’s first two years and Trump did not need to remove $1.5 million from the treasury to walk our economy back from the precipice.
In fairness, to accomplish the recovery that saved capitalism as we know it in 2009, Obama did significantly increase deficit spending by over $1 trillion, but this was to stop an economy in free fall that was losing 800,000 jobs a month.
His promise at the time – if we expand federal borrowing to make targeted investments in both the economy and in human capital, the massive job loss will be arrested and the subsequent increase in tax receipts from an improving economy will reduce the annual deficits in the out years of his presidency.
The outcome – the annual deficit spiked to over $1.4 trillion during his first year in office and the Republicans were outraged – calling him the worst and most fiscally irresponsible president in the history of this country.
However, by the time he walked out of the White House as president for the last time in 2016, the deficit had been reduced to $587 million – only slightly higher than when he assumed office and the country was at near full employment, thanks to the recovery spawned by Obama’s fiscal policies.
Now, estimates are that by the end of Trump’s 2nd year in office, the federal deficit will likely exceed $1 trillion.
How you ask, can we have a growing economy which produces more tax receipts, but concomittanly struggle with a near record increase in deficit spending?
The answer is found in Trump’s tax policy. Lusted for by many, this enormous tax cut — which came with no offsetting budget reductions — sucked $1.5 trillion in revenue out of the federal tax coffers in 2018, leaving that cash in the bank accounts of major corporations and mostly the richest people in this country.
Trump said we would see an immediate explosion of new jobs, blunting any loss in tax revenue. However, the data show that while this reckless policy juiced the country’s annual deficit to near record numbers, the promised added stimulus from job growth has yet to be realized.
Notably, based on reasonable linear projections, we are right where Obama’s recovery predicted we would be on job growth at this point-in-time.
So how will Republicans address this massive $1 trillion annual deficit before it crowds out private borrowing and siphons all of the marrow from the bone of this economy?
Predictably, key Republicans have now targeted Medicare, Medicaid, and Social Security for cuts to reduce spending so the massive tax give away will not inflict lasting damage to the economy.
Let that marinate for a moment – we give back over $1 trillion in tax revenue and now the nation’s leaders are proposing to fund this largese by reducing health care and social security benefits of middle income and poor Americans.
So for those of you who believe elections do not matter, you better ask somebody and then go vote on Tuesday – smartly I hope.
Note: Love these trues something that folk don’t want to hear.