As the economic situation continues to worsen, I begin to wonder what exactly the plan is for paying off the debt. Let's just look at the numbers:
As of the end of last year, the US has $35.46 trillion in debt, at an average interest rate of 3.32%. This means that by the end of the year, assuming zero deficit, the debt will go up by an extra $1.18 trillion. However, we won't assume zero deficit because Congress is the one in control of money, and they project a $1.9 trillion deficit for 2025.
So we have a pretty simple goal: if we want to just tread water and keep the debt exactly where it is, Trump needs to come up with $2.98 trillion in additional revenue by the end of the year. Let's call it $3 trillion for simplicity. Where will the money come from in 2025?
Increased tariffs on China: $20 billion
Tariffs on Canada and Mexico: $110 billion
DOGE: $105 billion (claimed)
Removing Dept of Education: $102 billion
Okay cool, so far we're at $0.34 trillion, a ninth of the way there for 2025. In the meantime, at his joint address to Congress Trump called for renewing his expiring 2017 Tax Cuts and Jobs Act, which allows a $4.5 trillion increase in the deficit from tax cuts over the next decade so long as spending is cut by $2 trillion. If spending is not cut by $2 trillion, the cap on tax cuts will be reduced dollar-for-dollar; if spending is cut by more than $2 trillion, the cap on tax cuts will be increased by the same.
I'm gonna be honest: I think this is retarded. This is Congress saying that they're going to buy a private yacht on their credit card, and Trump is agreeing so long as he gets a $20 discount on the annual maintenance. I don't know what the solution is but this ain't it.
