Cutting taxes and renegotiating bad deals with foreign countries to eliminate the nation’s debt sounds like GOOD ideas. So why are certain people speaking out against it?
Money.cnn.com reports: Donald Trump claims America is on the verge of a “very massive recession.”
But don’t worry, Trump says he can save the economy and get America out of debt. Just give him eight years in the White House and he’ll make America’s $19 trillion debt go away.
How? Trump wants to slash taxes and fix trade deals with China, Mexico and other nations.
“You have to do a tax cut. Because we’re the highest-taxed nation in the world,” Trump said in a recent interview with The Washington Post.
Experts say: Yeah right.
“It strikes me as wildly implausible at best,” says economist Doug Holtz-Eakin, who is president of the right-leaning American Action Forum and a former head of the Congressional Budget Office.
Plans to reduce — let alone eliminate — the federal debt typically have three key components: RAISE taxes, cut spending and tweak Social Security and Medicare. Trump is talking about exactly the opposite when it comes to taxes, and he hasn’t mentioned any of those other things except some very minor spending reductions.
Trump believes the U.S. is on the verge of economic disaster
Trump advises people to get their money out of the stock market.
“I think we’re sitting on an economic bubble. A financial bubble,” Trump told The WashPost. “It’s a terrible time right now [to invest].”
It’s not the first time he’s made this dire warning. He said the same thing in the fall. He thinks the U.S. economy can’t survive the strong dollar, government regulations and buying so many cars and other goods from foreigners.
“It’s precarious times. Part of the reason it’s precarious is because we are being ripped so badly by other countries. We are being ripped so badly by China. It just never ends,” Trump said.