The secret behind growth in Trump's America is deficit spending

Halfway through Donald Trump’s first term, it’s getting easier to piece together an account of how his policies are supposed to drive economic growth.

And the economy is, in fact, expanding pretty fast –- but not necessarily for the reasons Trump said it would. The president promised to squeeze more American growth out of businesses and foreigners. Instead it’s the government, deploying its balance sheet via deficit-spending, that’s doing the work.

The theoretical version of how Trumponomics would succeed might look something like this: After inheriting the most lopsided U.S. recovery of modern times, in which households contributed a record share, Trump would summon reinforcements from two directions.

First, he’d get tough with U.S. counterparties, friend or foe -- reducing the drag from trade, and maybe even turning it to a plus. Second, he’d revive the long-dormant enthusiasm for investing among American companies, by lowering their tax burden (as well as slapping tariffs on their foreign rivals.)

It hasn’t quite worked out that way.



https://www.msn.com/en-us/money/markets/the-secret-behind-growth-in-trumps-america-is-deficit-spending/ar-BBRh8k1?li=BBnb7Kz#image=2