Trump administration's plan to reduce the size of the federal government
Breitbart News economics editor John Carney and host Larry Kudlow discuss the Trump administration's plan to reduce the size of the federal government, stating that it will be profoundly anti-inflationary by removing federal workers who consume goods and services without adding to the economy.
Key Points
- Reducing federal workforce can shift resources to the private sector
- Historical reference to impoundment and budget-cutting discussed
Pros
- Reduction in size of federal government can be anti-inflationary
- Forcing federal workers into the private sector may increase supply of goods and services
Cons
- Potential loss of jobs for federal workers
- Uncertainty around the impact of such a large-scale reduction