Well I read the article about the Trump debt and I was shocked in the first paragraph, so let’s begin .
**”to 3.5 percent to 4 percent. These projections are above the 2-3 percent healthy growth rate. When growth is more than that, it creates inflation. Too much money chases too few good business projects. Irrational exuberance grips investors. They create a boom-bust cycle that ends in a recession. Trump’s Fiscal Year 2019 budget lowered annual growth rates down to between 2.4 percent and 2.9 percent annually.”**
What a load of horseshit. Growing an economy fast DOES NOT cause inflation. This was seen in Reagan’s economic growths of 7% where inflation was very low compared to the double digits it was in when he entered office( with low growth). What causes inflation is the regulations and taxation’s that pull up costs and then prices. What else causes inflation is the expansion of the money supply.
What it wrote about the boom and bust cycle was garbage. Boom and bust cycles are artificially created by the federal reserve which is central bank that manipulates interest rates by artificially lowering them to “boost growth”.Credit and monetary expansion leads to malinvestments in a boom which is inflationary and a bubble. After a while these investments seem unprofitable and are dropped and a bust occurs. The bust is necessary as the all the malinvestments that took place need to be liquidated.
**”Jobs Act. It cuts the corporate tax rate from 35 percent to 21 percent beginning in 2018. The top individual income tax rate drops to 37 percent. It doubles the standard deduction, and eliminates personal exemptions. The corporate cuts are permanent, while the individual changes expire at the end of 2025. But it won't stimulate the economy enough to make up for lost tax revenue.”**
That’s odd because Trump is reaching 3% annual growth this year and tax revenues have went up since the tax cuts.
