(C) Daily Kos This story was originally published by Daily Kos and is unaltered. . . . . . . . . . . Trump Would Blow Up Inflation and the Deficit [1] ['This Content Is Not Subject To Review Daily Kos Staff Prior To Publication.'] Date: 2024-06-17 Joe Biden inherited a nation in crisis from Trump. We had an out of control pandemic, 10 million Americans had lost their jobs, 12 million Americans lost insurance, 8 million Americans fell into poverty and the annual deficit increased from $585 billion to $3.1 trillion. When Trump “left office, the murder rate was higher, drug overdose deaths had increased, and the abortion rate had gone up for the first time in decades. America was more bitterly divided, and deficits increased each year of his presidency. His early Covid lies helped fuel an immense amount of confusion and almost certainly cost American lives. And his entire sorry term was capped by a violent insurrection fueled by an avalanche of lies.” David French. By many measures, we are much better off now than we were four years ago. America is in currently the midst of a historic economic recovery. 272,000 new jobs added in May. Women’s employment rate hit another high. 30 straight months of unemployment rate at or below 4%. Wages up 4.1% over past year, faster than 3.4% inflation. Unemployment remains at historical lows. 15.6 million jobs created under Biden administration. For reference, average job growth was around 170,000 in 2019 so job growth around 250,000 (50 percent above the pre-pandemic average) is much better than convicted felon Trump. The prime age labor force participation rate has been growing rapidly since 2020 and is now the highest in over 20 years. The U.S. economy is now the envy of the world. Nevertheless, there are no guarantees that we can maintain and build on this progress. The last three Republican presidents have presided over recessions. Another Trump presidency would continue this lamentable trend. House Speaker Mike Johnson has confirmed that he is working on legislation that would include — but not be limited to — a full extension of the failed 2017 Trump tax cuts for the rich, which are are set to expire in 2025. Meanwhile, over in the Senate, Mitch McConnell is working on a plan to increase defense spending to 5% of GDP. And that’s not all. Trump and the D.C. Republicans plan additional deficit funded corporate tax breaks, that would cost $1 trillion. In the unlikely event that the GOP takes control of both the White House and the Congress, The GOP plans to ram through its tax giveaways to the wealthy in early 2025. The GOP agenda amounts to more than a staggering $10 trillion in additional government borrowing for the tax cuts and defense spending alone. Who knows what other pet projects they might have. The Republicans don’t care about deficits when they are in power. Brian Riedl, a fiscal policy analyst at the right wing Manhattan Institute described these priorities as “completely detached from reality.” Convicted felon Trump also plans the biggest middle class tax increase in history. Somebody has to pay for the tax cuts for the billionaires and corporations. Trump would impose a 60% tax on all imports from China, a 100% tax on all auto imports and a 10% tax on all other imports. Trump’s proposed tariffs or tax increases would “cost a typical household in the middle of the income distribution about $1,700 in increased taxes each year,” the Peterson Institute for International Economics, said in a recent report. The Peterson Foundation leans right and is funded by the estate of a Republican billionaire. Michael Strain, the conservative American Enterprise Institute said: “I think we can say with a lot of confidence that President Trump’s trade policies and immigration policies would result in price spikes.” In the Atlantic, Ron Brownstein has recently posted an important new article, “Trump’s Plan To Supercharge Inflation,” which has the following passages: “Now former Treasury Secretary Summers sees the risk of another price shock in the economic plans of former President Donald Trump. “ I have little doubt that with the Trump program, we will see a substantial acceleration in inflation….” A growing number of economists and policy analysts are warning that Trump’s second-term agenda of sweeping tariffs, mass deportation of undocumented migrants, and enormous tax cuts would accelerate, rather than alleviate, inflation. Mark Zandi, the chief economist for Moody’s Analytics, forecasts that compared with current policies, Trump’s economic plans would increase the inflation rate and force the Federal Reserve Board to raise interest rates higher than they would be otherwise. For many economists, Trump’s plans to impose 10 percent tariffs on imported products from all countries and 60 percent tariffs on imports from China are the most concerning. These new levies go far beyond any of the tariffs Trump raised while in office. Trump’s proposed tariffs also dwarf the levies Biden recently imposed on electric vehicles and assorted other products from China. Trump’s pledge to undertake a mass deportation of undocumented migrants would put pressure on the cost of both goods and services. Removing millions of undocumented workers from the economy at once would create massive labor shortages in lots of different industries. If you are talking about kicking 50 percent of the farm labor force out, that is not going to do wonders for agricultural food prices. “ Former Treasury Secretary Lawrence Summers used to be every Republicans’ favorite Democrat when he was critical of the American Rescue Act of 2021. He won’t be anymore since blasted policy proposals from as immensely damaging to the economy. Said Summers: “This is a prescription for the mother of all stagflations.” He added that Trump’s policies would also create “worldwide economic warfare.” Trump isn’t running for president — he’s running for dictator. Authoritarian dictators like Putin, Orban, and Erdogan have a history of wrecking their country’s economies. Once Trump wrecked the economy, we wouldn’t have any recourse. He has promised to invoke the Insurrection Act to arrest protesters, investigate journalists and prosecute his political opponents. A Trump victory would be the end of freedom in America. “Once you build a house you always have it. On the other hand, a social or economic gain is a different matter. A social or an economic gain made by one Administration, for instance, may, and often does, evaporate into thin air under the next Administration.” Franklin D. Roosevelt. Trump has never once gotten more votes than his political opponent. Ever. And under his stewardship, the Republican Party has had historic electoral defeats in 2018, 2020, 2022 and 2023. The Democratic winning streak has continued into 2024. Moreover, Biden leads in many reputable polls. Be confident going forward. Take nothing for granted. Keep working hard. It’s America or convicted felon Trump. Choose wisely. 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