In the history of mankind, many republics have risen, have flourished for a less or greater time, and then have fallen because their citizens lost the power of governing themselves and thereby of governing their state. TR

Wh3

Trump Abandons Fiscal Restraint Again, Raises Spending by $320B

What happened to the great dealmaker?

Early in his administration, President Trump signed a spending bill that vastly increased both military and domestic spending, since the former was being held hostage by Democrats so they could get the latter. And, he felt, we needed the military spending increase after Barack Obama had depleted the military’s coffer’s.

Trump said he’d never do it again. He just did.

I cannot believe that the military budget can’t be trimmed of waste in order to make way for lower spending increases. The military-industrial complex certainly has something it can give away.

But no, we’ll keep passing the bill to our children and grandchildren. And the problem could develop sooner. Where do we get the money to cover our bills for the next major crisis while we continue will trillion dollar annual deficits?

Trump knew what he was doing when he gave the budget deal to Treasury Secretary Mnuchin to negotiate. Mnuchin is no conservative. White House Chief of Staff Mick Mulvaney, a supposed budget hawk, is the big loser here.

As are the rest of us.

According to the New York Times:

White House and congressional negotiators reached accord on a two-year budget on Monday that would raise spending caps and lift the government’s debt ceiling, likely averting a fiscal crisis but splashing still more red ink on an already surging deficit.

If passed by Congress and signed by President Trump, the deal would stop a potential debt default this fall and avoid automatic spending cuts next year. The agreement would also bring clarity about government spending over the rest of Mr. Trump’s term.

I am pleased to announce that a deal has been struck with Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer, Speaker of the House Nancy Pelosi, and House Minority Leader Kevin McCarthy – on a two-year Budget and Debt Ceiling, with no poison pills

“It’s pretty clear that both houses of Congress and both parties have become big spenders, and Congress is no longer concerned about the extent of the budget deficits or the debt they add,” said David M. McIntosh, president of the Club for Growth, a conservative group that advocates for free-enterprise.

The agreement, struck by Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin, would raise spending by $320 billion, compared to the strict spending levels established in the 2011 Budget Control Act and set to go into effect next year without legislative action. Spending on domestic and military programs would increase equally, a key demand of Ms. Pelosi, offset by about $75 billion in spending cuts, far lower than the $150 billion in cuts that some White House officials initially demanded.

The deal would lift the debt ceiling high enough to allow the government to keep borrowing for two more years, punting the next showdown past the 2020 elections. The negotiators hope to enact the accord before Congress leaves for its August recess.

7 thoughts on “Trump Abandons Fiscal Restraint Again, Raises Spending by $320B”

  1. A question I’ve asked my friends.
    “If Trump got NATO and Japan to increase their contributions for their own national defense, why does the U.S. military need a higher budget?”
    No explanations given yet.
    It’s obvious neither party gives a crap about Federal debt or deficit spending.

    1. The DOD is finacial mess.
      I know my beloved US Navy is wasting BILLION$ on…
      1) a useless warship class (LCS); dozen+ LCS built and NONE of them have Deployed in 10+yrs…under-performing & under-armed.
      2) wasting Million$ on sickening Politically Correct “Diversity/SJW/rainbow flag” training…instead of sailing-war-fighting skills.
      3) wasting MILLION$ on too many useless, weak-willed, non-fighting ‘Admirals’ & their luxury staffs.

  2. While I don’t disagree, you deal with the hands you are dealt. Another government shutdown would be disastrous for Trump’s reelection and the Democrats have control over the purse strings. And you are right, very few politicians have the stomach to change things with the budget.

    1. It’s a good point that it’s easier for me to criticize this than it is for Trump deal with the reality on the ground. But I do think he should have made a massive effort to reform DoD, there is so much corruption and overspending. I support very robust spending on military we need.

      1. Totally agree Keith – it’s about lobbyists and too much power to people not in a position to make the serious decisions. I live in California – our hands are completely tied. Absolutely nothing we can do. It will take a major financial meltdown for anything good to come out of our mess here. Recently there was a discussion about a security guard for the DWP in Los Angeles who made over $300,000 in overtime last year or the prior year. Not sure which. The way the DWP contract calculates overtime is criminal – supposedly responsible people agreed to the contract. It’s a joke.

Comments are closed.