Friday, 23 May 2025

Is Trump's big bill beautiful or ugly?

Making a judgment about Donald Trump's "big beautiful bill" is almost impossible because it is so complex. It's more than 1,000 pages long with detailed clauses on every page and financial imlications that are difficult to guage with any degree of certainty. It's claimed the bill which covers a multiple range of political issues will increase the national deficit by another $3.8 trillion. The figure is so staggering you wonder whether that's accurate. If it is accurate then the US deficit, currently around $2 trillion will be nearly $6 trillion. You don't have to be a financial expert to work out that a deficit of such huge proportions cannot be good for a flourishing economy. The interest on the national debt is so enormous that it has been claimed last year it exceeded the total amount spent on defence in the US - $997 billion. How can a country be financially stable if it pays interest on borowing at that rate? No wonder there are a lot of Republicans in the Senate who will be looking at this situation when they come to examine and "approve" the bill. These days most countries talk about the need to have fiscal responsibility which means trying to balance the books without borrowing huge sums. The US under the Trump administration doesn't seem that worried about the piling-up debt. But at some point the mathmaticians in the administration will realise the massive debt is no longer sustainable.

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