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3% vs 2% September 30, 2017

Posted by hslu in 美國, Do you know?, Economics, Health Insurance, Obamacare, Taxes.
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We’re talking about the growth rate of American’s economy in the next 10 years.

Trump, well his underling, said that America’s economy will grow 3% on average for the next 10 years after Republican’s tax reform is enacted as law.

Source: Bloomberg.

You see, Republican and Democrat are ‘兩個烏鴉一般黑’, they are ‘一丘之貉’. They use this kind of financial trick to tell American citizens that even though their program, be it Obamacare in 2009 or tax reform in 2017, will increase deficit, but the resulting higher economic growth will generate enough taxes to make the new program budget neutral: a term you will hear repeatly before the end of this year.

Do you know the impact on American’s national debt if the economy grew 2% instead of 3%? 

About $2 trillion. And that’s assuming the U.S. won’t fall into a recession and no funny accounting gimmicks.

Last year, the U.S. federal deficit was $590 billion but the national debt rose by $1.4 trillion; a whoppying $810 billion difference.

Why? Where did $810 billion go?

Well, check out this link below and read yourself.

https://www.google.com.tw/amp/s/www.forbes.com/sites/johnmauldin/2016/11/02/thanks-to-obamacare-government-debt-is-worse-than-you-think/amp/#ampshare=https://www.forbes.com/sites/johnmauldin/2016/11/02/thanks-to-obamacare-government-debt-is-worse-than-you-think/
Allow me to give you some highlights to get you started:

Do you know that government’s borrowing to make student loans and repairs on highways and bridges aren’t classified as deficit? These items are ‘investments’ so that they don’t count as deficit. In addition, the U.S. government had to borrow some money to pay for social welfare recipiants because the government didn’t collect enough taxes from FICA deductions to pay for social welfare benefits: social security, Medicare and ACA. There are more in the article if your blood pressure is under control.

A warning: as powerful as America is, all bean counters working for the federal government couldn’t figure out where $82 billion went.

This is your America.

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