President Donald Trump’s proposed budget has no chance of passing through a Democratic-led House of Representatives — and according to Roosevelt Institute fellow Michael Linden, we should all be relieved.
In a column posted at CNN, Linden explains why Trump’s budget would be an “economic calamity” for the United States, as it would pummel low-income Americans and make inequality worse than ever before.
“To start with, President Trump proposes massive immediate cuts to the kinds of public services, protections and health care that help propel short-term economic growth by supporting demand for goods and services,” he writes. “The cuts are so deep, so massive and so poorly targeted that they could be large enough to even push us to the brink of a recession. Recall that, right now, overall economic activity grew by only 2.1% over the last year. Well, Trump’s budget includes roughly $958 billion in total cuts in the first four years. That amounts to about 1% shaved off of total gross domestic product right there.”
Linden also argues that Trump’s budget “slashes at those very foundations” that create a productive workforce, including “education, health care, research and development.”
“The result would be both a less productive workforce and less consumer demand, producing a weaker economy overall, with the already-rich capturing most of the gains,” he writes.