Wednesday, May 3, 2017

Breitbart Getting Trump Followers Prepared for Huge Budget Deficits

John Carney who left The Wall Street Journal in January to join the pro-Trump Breitbart, is out with a column promoting the wonders of deficit spending. 

He had to find a Keynesian Democrat to go on record supporting huge deficits but that is exactly what Carney found. He wrote yesterday:
Robert Shapiro thinks people are missing the point of Donald Trump’s tax cuts.
As Deputy Secretary of Commerce, Shapiro was one of the prime-movers behind the economic policies of Bill Clinton’s administration. He’s not a fan of the Trump administration, describing in an interview with the New York Observer the Trump administration’s claims that the tax cut will pay for itself with economic growth as “incorrect or nonsense.”

But he thinks many critics of Trump’s tax plan are off-base when they complain about its potential to raise budget deficits. A higher deficit, particularly in the short-term, may be needed to hold off a recession.
Also note, Carney is referencing Trump's son-in-law's electronic rag The Observer.

Carney concludes his piece:

[T]ax cuts that are “paid for” won’t do much to stimulate the economy. They just trade tax cuts in one area for tax hikes in other. To be truly stimulative, tax cuts should raise budget deficits. And since it is likely that the economy will contract in the not-so-distant future, implementing a stimulative tax cut is wise.
So we have The Observer and Breitbart promoting Keynesian snake oil remedies, expanding budget deficits. Will Trump supporters now turn Keynesian?

For the record, budget deficits either crowd out private sector borrowing, which results in funds going into the hands of bureaucrats, politicians and the deep state rather than into the hands of entrepreneurs or the Fed monetizes the deficit spending which ultimately results in distortions in the economy and accelerating price inflation.

But this, apparently, is what the Trump press corp been given orders to promote.


1 comment:

  1. When were the great bulk of Trump supporters not Keynesian?