Trump's tariffs and fiscal challenges in the economy
Trump faces four major challenges in the economy, including fiscal policy issues inherited from Joe Biden and the impact of his own trade tariffs. Addressing these challenges requires spending restraint and reforming entitlement programs.
Key Points
- Federal government spending consuming more than 23% of America’s economic output
- Potential automatic tax increase if 2017 tax cuts are not extended
- $2 trillion annual deficits and record levels of government debt
- Spending restraint and entitlement reforms needed to address challenges
Pros
- Spending restraint can help address fiscal challenges
- Reforming entitlement programs can limit overall government growth
Cons
- Resistance from special interest groups and media
- Potential for a massive fiscal crisis if challenges are not addressed