Deficit Hawks May Not Be Part of Donald Trump’s Washington

infrastructure-cc

Interest rates rising may throw a wrench into this before it gets really started. The cost of servicing the current debt will explode with higher rates. The bigger the debt, the bigger the burden on taxpayers to service the debt when rates move up.

We don’t need more taxpayer financed, debt financed infrastructure projects. We need to get things in line with fiscal reality. A bunch of new federal spending is NOT what this country needs. But, this is why Trump was able to turn much of the unionized Midwest to him. We’re willing to bet that there will be plenty of cronyism in the awarding of contracts and that concerns us.

It’s going to be wins and losses for small government people with Trump, which is I suppose better than no wins at all.

(From The Washington Post)

“With negative interest rates throughout the world, it’s the greatest opportunity to rebuild everything,” Bannon said. “Shipyards, ironworks, get them all jacked up. We’re just going to throw it up against the wall and see if it sticks. It will be as exciting as the 1930s, greater than the Reagan revolution — conservatives, plus populists, in an economic nationalist movement.”

Bannon was describing something akin to Franklin Roosevelt’s “bold, persistent experimentation.” Nothing could be further from the rhetoric of Republicans in the Obama years – or from what Washington elites thought the country needed. In both the vice presidential debate and the final presidential debate, moderators spoke under furrowed brows about how the debt crunch was threatening Social Security and Medicare.

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