WASHINGTON, May 25, 2017 – While the mainstream media (MSM) has blasted President Trump’s proposed budget for fiscal 2018 because of its huge cuts to many social programs, the reality is that this is the budget American voters expected when they elected Trump. The President’s 2018 budget begins to cut the waste in Federal government spending and puts the US on the road to a balanced budget.
As noted in The Hill, there are 66 programs that are completely eliminated in the Trump budget, which will reduce annual spending by $27 billion. All these programs were deemed a waste of taxpayer’s money and have produced little positive results.
Trump is putting taxpayers first.
Since 1935 when Social Security was passed, the Federal government measured its success by how many Americans received government assistance. Trump says this notion has got it backwards. Success should be measured by how many Americans no longer need government assistance but rather, are able to take care of themselves.
Trump was careful not to cut spending for people who are less able to care for themselves, however. The President did not cut Social Security or Medicare, which are longstanding Federal programs aimed to help the elderly. Yet Trump did cut programs like food stamps. While the MSM predictably blasted Trump for taking food out of the mouths of the needy, Trump’s response essentially was that he was determined to have fewer needy Americans.
In fact, the Obama administration vastly increased spending on food stamps, so Americans could more easily qualify for that program. Obama also relaxed the requirements permitting individuals to receive welfare payments, primarily by removing the work requirement that had been imposed during the Clinton administration. As a result, Federal spending on welfare increased substantially. The Trump budget will roll this back.
Obama also provided free or heavily subsidized health care to any Americans who did not have sufficient income to purchase insurance on their own. This benefited up to 20 million Americans, and Obama claimed that as a major success. Trump says this is a major failure.
By taking the Obama point of view, taxpayers have not only to support themselves, but must also provide free income (welfare), free food (food stamps) and free health care (Obamacare) to many people who are actually able to take care of themselves. Taxpayers have long wondered why these recipients of government programs aren’t taking care of themselves.
The Obama philosophy of taxing more, spending more and having the Federal government overly regulate the economy led to stagnating US economic growth. In fact, Obama is the first president in American history to serve his entire term in office without having at least one year where US economic growth was at least 3 percent.
In fact, during the 8 years of the Obama administration, US economic growth averaged just above 2 percent annually. That meant there was little or no opportunity for lower income Americans to find employment. Without that opportunity, marginally employable workers had to drop out of the labor market. As a result, America’s labor force participation rate fell to historically low levels. Obama then convinced taxpayers that they had an obligation to provide income, food stamps and healthcare to these discouraged Americans, thus perpetuating the problem.
Trump’s budget begins to change that.
Trump’s budget will reduce government spending, taxes and the Federal deficit. Trump has also removed burdensome regulations that have been impeding economic progress and job-creating growth. Taken together, these actions will serve to grow the American economy. Conservatively, Trump estimates economic growth will average 3 percent, assuming his budget is implemented. That figure could prove to be below what will actually transpire.
If Trump is successful in reducing tax rates for all Americans by at least 10 percent, economic growth could be as high as 4 percent annually. In some years, perhaps growth will even match the 7.5 percent annual growth rate achieved in 1984, just three years after the similar Reagan tax cuts. That means fewer Americans will need food stamps and welfare, reducing government outlays even further.
Trump’s reduction in spending on those programs is not the result of a president who wants to cut spending for the needy. Instead, a substantial portion of the President’s spending reductions will actually be due to the reduction in the number of needy Americans who need such programs.
Economic growth is really the answer to most of our economic problems. Growth will provide opportunity, raise incomes, improve the standard of living and reduce many vexing social problems. Trump’s budget will begin to do what is needed to achieve growth in spite of the steady diet of negative commentaries streaming daily from the mainstream media.
Taxpayers should support Trump’s budget.