Page 157 - TrumpsEconEra_Flat

Trump’s Economic Era
The strangest liberal critique is that the budget
assumes a 3 percent growth rate for the second half of
the budget period. The budget expects only a modest
2.4% GDP growth through 2018 and does not envision
a 3 percent growth rate until 2021. We are faced with a
sad state of affairs if Trump’s critics do not expect even
this low growth rate. In their minds this is not possible
because under Barack Obama the growth rate never
reached 3 percent, averaging only 2.2 percent annually.
GDP growth averaged about 4 percent a year in the
1980’s and 1990’s.
There is no way we can afford our entitlement
commitments without at least a 3 percent growth rate,
much less balance the budget. Logic would tell us that
the Democrats would favor Trump’s growth policies so
that they could afford their entitlement programs—but
sadly we do not live in a logical world.
Democrats are also upset that the budget puts a
higher priority on defense spending than other
programs. However, this increase in military spending
is only about half compared to President Ronald
Reagan’s defense buildup of 6 percent in 1986. It is a
sign of the times that even modest cuts and modest
increases in some areas could lead to so much anger
from his opponents.

The budget does cut spending for food stamps,
mainly by letting states impose a work requirement.
The Trump Administration has proposed to replace
food stamps with boxed food. Forty-four million
Americans receive food stamps, 16 million more than
in 2008. This increase is a symptom of many workers
leaving the job market during the Obama years.

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