One of the noteworthy features of the political climate in the USA is the lack of agreement on what the facts are – and how the economy should be allowed to function. Should it be a hands-off laissez-faire economy? Should there be more regulatory intervention?
Many politicians speak of free markets when they think it will help them get votes. But the body of work over the last 100 years is that big government is always the chosen solution.
President-elect Trumps, for his part, promotes policies that will do both. He wants to slash regulations and cut spending. But he also wants to preserve Social Security, boost defense spending, and place significant trade tariffs on foreign imports.
The simple fact is you cannot have your cake, and both eat it too. Once you have it, it is already gone. There is nothing left to eat.
This reality is why the DOGE bros – Elon Musk and Vivek Ramaswamy – will have trouble slashing $2 trillion from the budget. Without some give from transfer payment programs and defense spending, it will be impossible to pull off. Continue reading
