The Wizard of Trump … Smoke & Mirrors

Last week I wrote about Donald Trump’s newly-named team of economic advisors, 13 Rich White Men, and noted that each was in the stratosphere along with Trump himself, and far removed from the economic realities of the real world.  Therefore, I questioned whether their policy “advice” would be of benefit to the nation as a whole, or merely to the 1% in their own class.  This week, Trump gave his first (hopefully last) speech about his economic game plan, and proved that my concerns were justified.

While it is true that I am not an economist, I am a CPA and have a basic understanding of how budgets work, so let us take a look at just a few of Trump’s proposals and how they would affect the average citizen:

  • Cut the highest tax rate from 39.6% to 33%. This will be a great help to the 1% who may actually be in that top bracket, but neither I nor anybody reading this blog are likely in that bracket.
  • Cut corporate taxes from 35% to 15%. This might make the U.S. a more desirable location for multinational corporations, and might make the U.S. more competitive in world markets, likely adding some jobs.  However, with tax incentives and credits, the average corporation in the U.S. currently pays an effective rate of just over 18%.
  • Eliminate the ‘estate tax’. Guess what, folks!  The average citizen pays no ‘estate tax’!  Only the wealthiest individuals who inherit at least $5.45 million (or about $10 million for married couples) are subject to the 40% tax. His claim is that this would ‘help workers’.  Workers rarely inherit $5 million!
  • Repeal ACA (Obamacare). First, it is doubtful he could do this without some comparable alternative plan, as the republicans in Congress have tried over 50 times to repeal ACA and failed every time.  But even if he could, the result would be that some younger, healthier people might pay less for insurance, but older people would be left out in the cold, unable once again to afford insurance, and those with pre-existing conditions would likely be left without insurance.  Great idea, huh?
  • Eliminate environmental policies and place a moratorium on new policies. He would support increased use of fossil fuels such as coal, that have been proven to increase damage to the environment. He claims this would reduce the cost of electricity which, in fact has increased only a total of 2% over the past seven years and is expected to decrease in 2016.  The ultimate cost of such an action would far outweigh the benefits.

dollarIt is unlikely that any of these proposals would get through Congress, and certainly none are aimed at providing economic benefit to the average citizen.  More to the point, however, is what is missing from his plan.  If every one of his proposals were passed by Congress, it would leave a multi-trillion-dollar deficit for which he has made no proposal to compensate.

In May, Trump suggested that he might reduce the federal deficit by ‘persuading’ creditors to accept less than full payment.  At the same time, he said that the U.S. need never default on its debt because “you print the money”.  Both of these statements prove just how little Mr. Trump, a self-proclaimed “successful” businessman despite numerous bankruptcies and lawsuits, actually understands about how the economy works.  As I mentioned, I am not an economist, but even with my limited knowledge I am able to comprehend that you cannot simply create a $10 trillion deficit without first determining where the additional money to fund the government will come from.

Does he plan to cut spending on current programs by trillions of dollars?  If so, which programs?  Nobody seriously believes he will cut military spending, or any other programs that provide income for the wealthy, so that leaves healthcare, social welfare, and other programs that are designed to help the poor and middle-income people.  Or, does he have some magic plan to build federal casinos and hotels?  Or perhaps he will just “print more money”!!!  Nobody knows, and for that reason, if for no other, his entire “plan” is foolhardy, if not obscene.

swiss-cheese-2Trump’s plan is woefully short on detail and so full of holes that it would make a piece of Swiss cheese jealous. Those who blindly accept whatever Trump says will love his economic plan, because he has said it will put more money in their pockets.  He has said it will create “millions of jobs”, however who would fill those jobs?  If he wants to deport immigrants and ban immigration, there may not be enough workers to fill those millions of mostly low-wage jobs. The only beneficiaries of his plan are the very people who live in that stratosphere occupied by Trump and his 13 rich white advisors.  But try explaining that to the lemmings with dollar signs in their eyes. I am reminded of the ‘Great and Powerful Oz’ in The Wizard of Oz, who promised everything to everyone, yet had not the means to fulfill a single one of his promises.  Think about it.

 

Oz-3.png

12 thoughts on “The Wizard of Trump … Smoke & Mirrors

  1. Pingback: One written speech and 16 lies | musingsofanoldfart

  2. I doubt seriously that anyone is really listening to what Trump has to say these days (except you and Keith, perhaps, which is above and beyond the call of duty). Those who despise him have turned him off and those who adore him hear only what they want to hear. He relies on catch phrases like “create more jobs,” and has no regard for the truth whatever. He has corralled his minions and they are dumb with worship of their foolish god. Their numbers may well have peaked by this time. The rest of the world is trying to figure out how to shut the man up.

    Liked by 2 people

    • You are so right! I sometimes get up in the morning, flip on the t.v. as I brush my teeth, and scream through the foam of the toothpaste “SHUT UP … JUST SHUT THE @#$% UP!” But still, i listen and I pound the keyboard. Whatever will I do after November??? 😀

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      • Bill Maher opened his remarks about Trump’s two weeks of bizarre and mean comments that followed the convention with the question “Where do I begin?” His latest is inviting the 2nd amendment people to assassinate Clinton. He will likely be saying today it was a joke , but he is winding up extremist’ dolls that can kill.

        Liked by 1 person

          • And, everything they need to know about this man and why he should not be President is so easy to find and this is before he announced he would run. There is a great Huffington Post article written by an attorney who worked for him – the punch line is please don’t vote for this man.

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    • Well you know I won’t be voting for him, and I’m doing my level best to make sure others don’t, even though it is costing me ‘friends’ almost daily! Guess my Facebook ‘friends list’ will be much slimmer and more manageable by November! 😀

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  3. Jill, what I found interesting is, within a written speech, Trump told sixteen large untruths per fact checkers, some which he has used multiple times and been proven as lies. Now, this is not the “off the cuff” lying we are used to from Trump which has given him #1 status as the more prodigious liar since the fact checking organizations began in 2007. These were written into the speech lies. That means his team of advisors and speech writers decided that truth telling was overrated, so they became accomplices to the lying process. Here is a link. Keith

    http://www.msn.com/en-us/news/factcheckingtrump/fact-checking-donald-trump%E2%80%99s-speech-to-the-detroit-economic-club/ar-BBvpLda?li=AA5a8k&ocid=spartanntp

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