The latest Congressional Budget Office is full of fiscal doom and gloom and serves as an epitaph to the gross financial mismanagement of the Biden era.
It's been four years of multi-trillion dollar spending bills, deficits of between $1.5 and $2 trillion a year, a 20% rise in the price level and falling real incomes. Trump was no fiscal tightwad either, but this is the wreckage of modern monetary theory put into practice.
The CBO report is a blaring ambulance siren of what happens if we stay on the Bidenomics track. Here are the unhappy lowlights:
Budget deficits of an average of nearly $2 trillion a year for the next four years at least. There's no pretense of bending this curve down.
The National debt hits $50 trillion in 10 years
The annual federal budget reaches $10 trillion in 10 year
Revenues NEVER catch up with the spending even if the Trump tax cuts are allowed to expire - as Biden has promised.
We wonder if communist spies from Beijing broke into the White House and concocted a master plan to sabotage the American economy whether they could come up with a better plan than this one.
And the the Left's rallying cry is four more years!
2) What the World Needs Now, Is Growth, Sweet Growth
Sorry, Joe.
You can't tax your way out of this fiscal calamity. The White House plan is to raise the corporate tax, the capital gains tax, the death tax and small business taxes. This will only slow growth and make the debt burdens worse.
What America needs now is growth. Much faster growth.
The curse of Bidenomics is that the CBO now predicts growth for the next decade is 1.8%. That's barely treading water.
Trump has the goal of 3%+ growth - which is basically the long-term U.S. average.
This would bend the debt curve down. Anything that boosts growth - tax cuts, repealing inefficient regulations, pro-growth immigration policies, technology, privatization, pro-American energy policies, artificial intelligence, fixing our education system with school choice - has to be the highest priority.
Growth will make future generations of Americans much richer, will erase deficits, and eventually the debt will shrink, as shown in the chart below from our economic advisory board member, Louis Woodhill.
3) Quote of the Day: Why You Must NEVER Trust the Media
This is a useful lesson from the late best-selling author Michael Crichton on why the media is not always trustworthy.
Media carries with it a credibility that is totally undeserved. You have all experienced this, in what I call the Murray Gell-Mann Amnesia effect.
Briefly stated, the Gell-Mann Amnesia effect is as follows. You open the newspaper to an article on some subject you know well. In Murray's case, physics. In mine, show business. You read the article and see the journalist has absolutely no understanding of either the facts or the issues. Often, the article is so wrong it actually presents the story backward—reversing cause and effect. I call these the "wet streets cause rain" stories. Paper's full of them.
You read with exasperation or amusement the multiple errors in a story, and then turn the page to national or international affairs, and read as if the rest of the newspaper was somehow more accurate about Palestine than the baloney you just read. You turn the page, and forget what you know.
4) Rand Paul Cites CTUP Study In Letter to Members of the Senate: No More Lockdowns – EVER
As you know, CTUP led the charge in pushing back against COVID-19 lockdowns during 2020-2022. Our recent report, "Covid Lessons Learned", continues to be the blueprint of how to confront future public health crises. That report highlights the devastating consequences of the Covid lockdowns and advocates a smarter, healthier response to the next global pandemic.
While we were shouting from the rooftops throughout 2020 to open the economy and the schools, one lawmaker stood with us the entire time: Sen. Rand Paul.
Clearly, Hulk has been reading CTUP Co-Founder Steve Forbes' book. Maybe we can get them to join together and merge two of the greatest phenomena over the last 30 years: Hulkamania and the Flat Tax Revolution!
See Hulk talk about the Flat tax by clicking below:
