Tuesday, May 30, 2017

Former Treasury Secretary Rips Trump Budget Projections

Here we go again,

Former Treasury Secretary under Bill Clinton, Larry Summers, in a new essay for The Washington Post, rips the Trump budget and the men behind it:
[T]he Trump administration forecast of growth of 3 percent for seven years between 2021 and 2027 is the equivalent of 2.8 percent growth per US adult. In the last 56 years US growth has never exceeded this figure for more than 3 consecutive years. Even if the economy’s underlying growth rate increased to 3 percent, is it really plausible that there will be no recession between now and 2027?...

The Trump economic team has not engaged in serious analysis or been in dialogue with those who are capable of it so they have had nothing to say in defense of their forecast except extravagant claims for their policies....

A business trying to sell stock on the basis of a document half as hype-filled as the Trump budget would be a joke.  No reputable investment bank would underwrite their offering. A great mystery here is why the experienced investment bankers in senior positions in the Trump administration hold the Budget of the United States to so much lower standards of integrity than they applied in their earlier lives.

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