Under Trump the party has abandoned any shred of fiscal credibilityby James Kwak / February 23, 2018 / Leave a comment
People have short memories. At least, that’s what Republicans in the United States are betting on. And they will be proven right… again.
First a $1.5 trillion tax cut. Then a bipartisan deal to increase federal government spending by hundreds of billions of dollars beyond existing caps. And now a Trump administration budget proposal that projects deficits of $7.2 trillion over the next decade—$4 trillion more than last year’s plan. Republicans are absolutely loving deficits and the national debt necessary to pay for them.
Of course, this has made Democrats and much of the reality-based media apoplectic. After all, the Republican Party spent the entire administration of President Barack Obama railing against record peacetime budget deficits (even though they were largely caused by the financial crisis that began under Republican President George W Bush) and blocking Democratic attempts to stimulate the economy out of the deepest, longest economic slowdown since the Great Depression. “Republicans Have Forgotten They Hate Deficits,” reads one headline in The New York Times.
But the surprise isn’t Republicans’ sudden embrace of deficits now that they are in position to take credit for tax…