Deficit hit $779 billion for last year. It hit $100 billion for October, the first month of this financial year. That's an increase of 60% over last October. Doesn't mean it will continue that high but it's not a good sign. We also had a 2.7% increase in the consumer price index. Greenspan said we could be witnessing the beginning of a rise in inflation and the deficit is playing a major role. Most economists are predicting a slowing growth rate through at least the first months of 2019. Trump's economic estimates were based on a growth rate of 4%. It's been purring along at 3.5-3.7 which is still very good. A very slight increase in unemployment claims is not too concerning at this time but bears watching.
The stock market has been bouncing around like a superball which is a sign of uncertainty. Trump's statement of a 10% tax cut for the middle income was obviously a last minute campaign farce. But it's likely that he will still pursue his 1% cut in corporate taxes and cuts to capital gain taxes. Hard to imagine additional cuts for the wealthy with nothing to appease the middle class so I wouldn't be surprised with a 2-3% cut for middle incomers. Combining increases in military spending with his $300 billion infrastructure plans, these tax cuts could blow up this deficit to $1.5 trillion. his is the same man who promised not to just balance the budget, but decrease our debt!!! This guarantees inflation and higher interest rates. The budget fight coming up will be very interesting.
The stock market has been bouncing around like a superball which is a sign of uncertainty. Trump's statement of a 10% tax cut for the middle income was obviously a last minute campaign farce. But it's likely that he will still pursue his 1% cut in corporate taxes and cuts to capital gain taxes. Hard to imagine additional cuts for the wealthy with nothing to appease the middle class so I wouldn't be surprised with a 2-3% cut for middle incomers. Combining increases in military spending with his $300 billion infrastructure plans, these tax cuts could blow up this deficit to $1.5 trillion. his is the same man who promised not to just balance the budget, but decrease our debt!!! This guarantees inflation and higher interest rates. The budget fight coming up will be very interesting.
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