- 25% cut to the EPA
- 14% cut to HUD
- 18% cut to the Commerce Dept
According to the Washington Post, and economic analysis by Mark Zandi, Chief Economist for Moody's Analytics, the cuts would result in a reduction of employment in the Washington region by 1.8% and a personal income decline of 3.5%. Robert Reischauer, a former director of the Congressional budget office said, "These Cuts would require a wholesale triage of a vast array of federal activities."
- At the same time, Trump is pushing to strengthen defense and security, another promise. He will propose major investment in our needy infrastructure, as he also said he would. Tax reform, regulation reduction, and repeal of the failing ACA are all in progress too. Expect to see jumps in business investment and consumer spending to follow.
Like it or not, Washington is finally getting things done and you know who likes it and is showing it?? Businesses and markets across the country! The uptick in hires, wages, stocks, and Fed rates are huge signs of approval.
Unlike the Obama years of painfully slow growth that mostly benefited the wealthy with invested assets, and actually hurt the middle class and poor, the growth ahead will benefit wage earners and people who want to return to the workforce.
While some skeptics think the market is set up for a crash, there are serious market watchers who say otherwise. There are experts who say Trump's pro growth action will usher in a new era of economic expansion that will result in doubling of the stock market over the next 5 years.
All Democrats can see are the horrible headlines. The assumption is that every regulation cut equates to terrible egregious actions by those the regulation was written to prevent. That lack any faith in free markets and the value of animal and entrepreneurial spirits.
Creative destruction brings temporary pain for some, and prosperity for others. But telephone switchboard operators eventually found new jobs. Change never comes easy. Mistakes, set backs, adjustments, and fixes will be needed along the way. Health care is a perfect example! The optimal approach will takes years to work out. And aspects take time in order for markets forces and feedback loops to kick in.
It is important to see the big picture. Our country is finally going in the right direction - the direction that Republican and Democrats alike have been looking for. Trump is reducing the size of the Washington DC economy and increasing the American economy. Rather than lining Washington's pockets, the focus is on filling our own bank accounts. Rather than all eyes being on Washington, eyes can turn to how well we run our states, our towns, our schools, our business, and our own household, and even our own personal health.
