Category: News & Comment
Federal Debt Could Spike Trump’s Big Economic Promises
The Associated Press: Donald Trump has big plans for the economy — and a big debt problem that will be a hurdle to delivering on them.
Trump has bold ideas on tax cuts, tariffs and other programs, but high interest rates and the price of repaying the federal government’s existing debt could limit what he’s able to do.
Not only is the federal debt at roughly $36 trillion, but the spike in inflation after the coronavirus pandemic has pushed up the government’s borrowing costs such that debt service next year will easily exceed spending on national security.
The higher cost of servicing the debt gives Trump less room to maneuver with the federal budget as he seeks income tax cuts. It’s also a political challenge because higher interest rates have made it costlier for many Americans to buy a home or new automobile. And the issue of high costs helped Trump reclaim the presidency in November’s election.
“It’s clear the current amount of debt is putting upward pressure on interest rates, including mortgage rates for instance,” said Shai Akabas, executive director of the economic policy program at the Bipartisan Policy Center. “The cost of housing and groceries is going to be increasingly felt by households in a way that are going to adversely affect our economic prospects in the future.”
Trump’s Tariffs Target Top Three Sources of U.S. Imports
This is not incompetence. It’s an attack. Creating economic chaos is fundamental to the authoritarian playbook.
After Running against High Prices, Trump Warns Americans That He’ll Raise Prices Across the Board The chaos is the point
In Shock Doctrine, her seminal work on the rise of authoritarnism in the contemporary world, Naomi Klein shows how fascists undermine democracies in order to replace them with authoritarian states by creating and exploiting economic chaos. In the disruptions that ensue, they seize power.
In advance of his inauguration next month, Trump is saying plainly that he is very intentionally bringing economic chaos on day one. As Maya Angelou said, “When someone shows you who they are, believe them the first time. People know themselves much better than you do.”
Salon.com: Donald Trump, who won in part due to inflation that peaked two years ago, campaigned on a policy of making everything from vegetables to televisions more expensive, suggesting a plurality of voters either did not understand tariffs — and the rippling economic impact of raising taxes on imported goods — or simply did not believe the Republican candidate would follow through.
In a Monday evening post on Truth Social, the president-elect reaffirmed that yeah, he’s serious.
Trumponomics Watch: Tax Cuts for the Rich Covered by Cuts to Medicaid, Food Stamps
“President-elect Donald Trump’s economic advisers and congressional Republicans have begun preliminary discussions about making significant changes to Medicaid, food stamps and other federal safety net programs to offset the enormous cost of extending Trump’s 2017 tax cuts next year,” the Washington Post reports.
“Among the options under discussion by GOP lawmakers and aides are new work requirements and spending caps for the programs.”
“However, concern is high among some Republicans about the political downsides of such cuts, which would affect programs that provide support for at least 70 million low-income Americans, and some people familiar with the talks stressed that discussions are preliminary.”
Fascism Experty Timothy Snyder: Trump’s Cabinet of Deplorables Is Designed to ‘Destroy Our Country’
Timothy Snyder, author of On Tyranny: It is a mistake to think of [Trump’s cabinet nominees] as flawed. It is not they will do a bad job in their assigned posts. It is that they will do a good job using those assigned posts to destroy our country.
However and by whomever this was organized, the intention of these appointments is clear: to create American horror. Elected officials should see this for what it is. Senators, regardless of party, should understand that the United States Senate will not outlast the United States, insist on voting, and vote accordingly. The Supreme Court of the United States will likely be called upon. Although it is a faint hope, one must venture it anyway: that its justices will understand that the Constitution was not in fact written as the cover story for state destruction. The Supreme Court will also not outlast the United States.
And citizens, regardless of how they voted, need now to check their attitudes. This is no longer a post-electoral moment. It is a pre-catastrophic moment. Trump voters are caught in the notion that Trump must be doing the right thing if Harris voters are upset. But Harris voters are upset now because they love their country. And Harris voters will have to get past the idea that Trump voters should reap what they have sown. Yes, some of them did vote to burn it all down. But if it all burns down, we burn too. It is not easy to speak right now; but if some Republicans wish to, please listen.
Trumponomics Watch: Trump’s Policies Already Clouding Mortgage Rates
“Donald Trump’s election win is clouding the outlook for mortgage rates even before he gets back to the White House,” the Associated Press reports. “The president-elect campaigned on a promise to make homeownership more affordable by lowering mortgage rates through policies aimed at knocking out inflation. But his proposed economic agenda could potentially set the stage for mortgage rates to move higher.”
Misinformation Drove Defeat of Democracy in 2024 Election
Brookings: For coming political battles, people need to be aware of how the current information ecosystem regularly is promoting falsehoods and skewing views about important issues. But we do not need to stand back and accept widespread misperceptions as the new reality. There are several things people and organizations can do to protect themselves for what will be a continuing wave of misinformation, disinformation, and false narratives.
There needs to be meaningful content moderation by social media platforms. Right now, many leading platforms are cesspools of rumors, false information, and outright lies. They are widely disseminated and seen by millions of people. If that continues, it will become increasingly difficult to discern fact from fiction—endangering our country’s ability to address major problems. Companies need to get far more serious about content moderation…
Hey Cat Ladies (and Men), Trump’s Tarriffs Would Raise Cat Food between 19% and 30%
GlobalPets.com: The Pet Food Institute (PFI) warns that imposing these additional tariffs on consumer goods will increase the production costs of canned cat and dog food. “Those costs will be passed down to Americans who rely on affordable, quality canned pet food,” the PFI warns.
The US does not manufacture a sufficient supply of tinplate steel and relies on imports from other countries. The trade association representing American pet food and treat manufacturers told GlobalPETS that around 62% of tinplate steel was imported last year.
Consumer Brands Association (CBA) stated that if the tariffs go into effect, companies will be forced to raise food prices, which could decrease domestic output, placing up to 2,800 tinplate manufacturing jobs in danger.
It is estimated that the cost of canned food and products could increase between 19% and 30% if the new tariff receives the green light from US officials. Additionally, up to 40,000 manufacturing jobs could be cut.
Message to MAGA Wives: Your Vote is Private
Boing Boing: If anti-Trump Republicans like Mitt Romney and Mike Pence aren’t courageous enough to endorse Kamala Harris, how can we expect an anti-Trump voter married to a trigger-happy MAGA bully to speak up? Well, in the voting booth she doesn’t have to, says a new Lincoln Project ad called “Secret.”
Julia Roberts narrates the ad for the Lincoln Project:
