Republican leadership has gone against the values of fiscal conservatism by approving national budget plans that will see America’s debt reach almost 100% of GDP within ten years, argues Stan Colander of Forbes. They strongly downplayed their new budget, which will make the country’s debt soar to $1 trillion. They offered much lower deficit predictions as they were calculating that tax breaks wouldn’t be renewed after expiring, which they likely will. The combination of lower taxes and higher spending is set to create an imbalanced deficit. This is particularly surprising, as President Trump claimed he’d pay off the country’s deficit.
Critics of the Republican deficit and tax plans look at them without seeing how they will benefit the economy in ways that will balance out the budget, believes Stephen Moore of The Washington Times. GOP reforms will lead to more economic growth, which will, in fact, reduce the debt to GDP ratio. Predictions that the budget will become overwhelming disregard the economic growth of 3% that President Trump is working towards. Lower taxes, less regulation, better trade policies and encouraging job growth are great ways to go about this. To begin with, much of the current deficit was inherited from the previous administration.