Gary Anderson Blog | The Curse Of Trump Is In Cutting Back On The Poor | Talkmarkets
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The Fed knew about the housing bubble before it burst but lied and said they didn't: Bill HR 1424 to buy bad paper (eventually called TARP) was introduced in March 9, 2007, before there began to be bad commercial paper from private subprime RE loans, in August.

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The Curse Of Trump Is In Cutting Back On The Poor

Date: Wednesday, May 24, 2017 7:01 AM EDT

The low GDP numbers we have are a concern, because the lower growth is, the harder it is to sustain social programs. However, as the chart shows, the United States is not exactly in its worse place when it comes to debt to GDP levels:

The Trump administration and the pundits who are likely paid to share his stories are all saying this is safety net unsustainable. Certainly, 2017 GDP has started out poorly at 0.7 percent for the first quarter. And that is a concern. But what if that is more an observation about how Trump has impacted Americans than about anything else? Maybe Trump is a recession in the making!

And Trump wants to pass potential savings gained from the backs of the poor to wealthy people. That makes no sense at all as capital already has been winning versus labor. Keep destroying labor and you will bring on a recession. Then, will the government respond to a deep recession by extending benefits with Trump as president?

He could deepen any recession that occurs. The Fed could have to be on its game to overcome Trump.

It is easy to cut the benefits to the poor. They have no influence. I don't think this means that cutting benefits for older Americans is right either, but maybe you could chip away at deficits somewhat, for bigger programs without hurting the constituents:

"Analytically, you do have to make hard choices," MacGuineas said. "I think this is a huge illustration about why being unwilling to talk about the real issues -- Social Security and Medicare and taxes -- means you then you end up gutting all these programs for low income people." 

Of course, more sane heads in congress will hopefully prevail, and they could realize that most Americans don't want food stamps cut in order to give wealthy people tax breaks. The idea that Trump is going to get people to go find a job seems wrongheaded, as the termination of unemployment benefits was the catalyst for finding jobs. It was a good thing some people were hiring and the labor market is far tighter now than it was in the Great Recession.

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