Trump's proposed budget for 2018
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Democrat
Colorado Springs, CO
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Dylan Matthews, Vox, March 16, 2017: Donald Trump's First Budget Outline, Explained Donald Trump's budget proposal for the 2018 fiscal year (starting October 1, 2017) has produced considerable consternation amongst both Democrats and Republicans. It guts programs that support climate change, the poor, and the State Department (foreign aid) while the Military, Home land Security and Veterans get big increases. As per the New York Times, the Environmental Protection Agency's budget would be cut by 31 percent while eliminating or curtailing most of Obama's initiatives and executive actions. Likewise the State Department is cut by 28 percent and the Health and Human Services Department by 17.9 percent. The Legal Services Corporation, the Corporation for Public Broadcasting, the National Endowment for the Humanities and the National Endowment for the Arts would be axed entirely. This is Trump's first pass at a budget. It is unlikely to pass in it's current form. He promises more details in May. Most people pay little attention to these presidential budget proposals, but we need to start actively protesting if we want to have our voices heard by the time Congress votes on its final budget.
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Adding that medical research, such cancer research, is taking huge cuts. nbcnews.com/health/health-news/trump-bu... I continue to be puzzled by the endless need to increase the military budget. In the next war, how many times do we need to be able to blow up the world. I suppose we need to be #1 and not let Russia or China be able to blow up the world more times than we can. - USA 150 times
- Russia 147 times
- China 132 times
Pretty close race. 
Yeah, I get it. What is the point of having any kind of research when when the goal is to blow up the world.
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Democrat
Colorado Springs, CO
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Democrat
Colorado Springs, CO
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Trump is making deep cuts to many programs that help Americans to cope day-to-day. Defunding the Community Development Block Grant program, for example, will especially affect senior citizens. The Meals on Wheels program served over 219 million meals to 2.4 million homebound senior citizens in 2016. Oh and it also supported 330,000 jobs. It will save $3 billion in Trump's budget enough to cover about 13 percent of his wall. The EPA's budget is cut 31 percent and defunds "Obama's Clean Power Plan, international climate change programs and research, and the Great Lakes Restoration Initiative and the Chesapeake Bay Program". Who needs clean air and water when corporate profits are at risk? As per the Atlantic, he also proposes to cut funding entirely for 19 independent agencies. Here’s the complete list of the independent agencies Trump wants to defund: - African Development Foundation
- Appalachian Regional Commission
- Chemical Safety Board
- Corporation for National and Community Service
- Corporation for Public Broadcasting
- Delta Regional Authority
- Denali Commission
- Institute of Museum and Library Services
- Inter-American Foundation
- U.S. Trade and Development Agency
- Legal Services Corporation
- National Endowment for the Arts
- National Endowment for the Humanities
- Neighborhood Reinvestment Corporation
- Northern Border Regional Commission
- Overseas Private Investment Corporation
- United States Institute of Peace
- United States Interagency Council on Homelessness
- Woodrow Wilson International Center for Scholars
He has called this the "America First" budget, but it would seem the only parts of America that benefits are corporations, the military, veterans and the rich. Looking at the list above of agencies that will be completely scrapped it shows the disdain he has for the lives of ordinary Americans.
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Democrat
Colorado Springs, CO
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Democrat
Colorado Springs, CO
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Democrat
Colorado Springs, CO
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Even though Trump's plan does not cut discretionary spending, the second order effects could be like a government spending cut and/or tax hike on the economy. Stands to reason that the non-defense groups and individuals who will lose incomes over the $54 billion discretionary government spending shift would have higher marginal propensities to spend than the defense related groups and individuals who will now receive that $54 billion. Meanwhile, the actual output of non-defense groups receiving incomes from the discretionary budget directly supports and furthers other economic activity and transactions; whereas, bombs, weapons systems, and standing armies do not. So I see Trump's "skinny budget" as a net negative for the economy. His full budget proposal is expected in May. At this point, we should expect an attack on Social Security and Medicare, even though candidate Trump said he wouldn't do that. He's hardly kept his word on healthcare reform. But for no strange reason, he's not expected to change course on cutting taxes for rich people. What I fear is that this is all going to lead to higher deficits with nothing to show for it, and then once Trump blows it, we are back again to arguing deficits and debts in a time of crisis. Democrats fail to understand that Republican Deficit Hawks/Terrorists are trying to trap Democrats into accepting the economic argument that Peter must be taxed in order for government to get the funds to give to Paul. That's not how the monetary system works. That's not how operations work. Federal government spending/lending precedes revenues/repayment because the government is the issuer of the US dollar. We are giving funds to Paul to pay Peter who then can pay taxes. Our concern should be whether or not this all serves public purpose.
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Democrat
Colorado Springs, CO
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Carlitos -- I always appreciate when you chime in. We've discussed the deficit/debt issue many times, and I agree with you and the MMTers that the "Federal government spending/lending precedes revenues/repayment because the government is the issuer of the US dollar." However, as we both know, much of Congress and the public for that matter lives in a different reality about budgets. They cannot think beyond their "household budget" and therefore hold the federal government to the same standard as their household budget when it comes to spending and borrowing. We don't need to argue the point...I agree with you. However, as you pointed out, our concern should be whether or not the budget serves the public purpose. For Trump's proposed budget, the answer is a resounding "no". It wastes money disproportionately on the military, and I'm hopeful that at least the 2011 Sequestration can hold back that $54 billion increase in military spending. However, many Democrats will likely side with Republicans on that issue...with fear mongering the military usually gets first cut at the trough. Not only that, Trumpcare also is a transfer of wealth to the Top 2 percent at the expense of health care the less fortunate. This is the rich man's budget and Trump is listening to "his kind" rather than the Appalachian coal miners and Rust Belt former factory workers who helped elect him...and still support him. Trump still has an uncanny ability to control the messaging, telling people what they want to hear. We'll see how long that lasts. In the final analysis, Democrats only tool is the filibuster, and that won't work for parts of Trumpcare that will pass with reconciliation. A government shutdown? I don't think Dems have the balls for it. Republicans as always will vote with their tribes. Elections have consequences.
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Schmidt Wrote:...However, as we both know, much of Congress and the public for that matter lives in a different reality about budgets. They cannot think beyond their "household budget" and therefore hold the federal government to the same standard as their household budget when it comes to spending and borrowing. We don't need to argue the point...I agree with you. I'd still say that the public and leadership is not that far off. And none of this is rocket science and I'm not very smart and I get it. Every time the debt ceiling debate and the deficit hysteria goes over the edge, it comes out down from some eminent voice at the top that the government does not ever have to default because it can always create and distribute the funds to pay its bills on time. Then the media calms down, and the politicians roll over on what needs to be done despite public perceptions and what the ideologues insist. Trump himself has said the government does not have to default because it can always "print the money" and a lot of people on the right recognize the same (that's not how it actually works but point is still valid). No conservative member of a professional field has ever not yielded to me on this point in private conversation. But the naysayers think its an undesirable option because they wrongly equate dollar creation with inflation. The data does not support that. So this is a very winnable argument, and it's won more and more each day as more professionals in the capitalist business and finance fields find about MMT.
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