Tuesday, October 3, 2017

Former GOP Deficit Hawk Says We Need (Yugely) Bigger Deficits to Lower Taxes (on the Rich). Huh?!?

In pure WTF territory, Trump's OMB director -- a former screaming mimi of a deficit hawk -- now says we need more deficits to give tax cuts to the rich in order to have "more growth." This is beyond wack.

Mulvaney: If we raise deficits this much, the rich get tax cuts and the poor win!

Crazy in the age of Trump is CRAZY. Or, to put it another way, there is no limit to the bullshit the GOP will throw around to try to get more money to their donor class.
Over the weekend on CNN, Mulvaney said the country needs “new deficits.”
Mulvaney said: “I’ve been very candid about this. We need to have new deficits because of that. We need to have the growth. If we simply look at this as being deficit-neutral, you’re never going to get the type of tax reform and tax reductions that you need to get to sustain 3 percent economic growth.”
Here's an established fact: If you allow deficits to grow -- without some offset like infrastructure spending or some other fiscal stimulus -- you risk raising interest rates on U.S. Treasuries to finance the increased deficit, which forces interest rates up generally, raising the cost of business investment, which will put a chill on economic growth. Plus, cutting tax revenue stifles government spending, which is another piece of economic activity, further dampening GDP, and that causes recessions.

But, hey, tax cuts for the rich! I've been very candid about this: we're fucked.

There is some hope. On Fox News, Chris Wallace took on Mulvaney's fuzzy math.

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