Next year the Trump deficit is expected to be one trillion dollars. (One trillion dollars is a stack of thousand dollars bills 67.9 miles high; were the stack laid on I-15 it would take about one hour to drive the length of it.)

Trump's reliance on debt creation to stimulate the economy is from the Reagan playbook. In 1980 Reagan received 50.7% of the vote. After he was in office, policies were adopted that ballooned the deficits to unprecedented levels; Reagan's annual deficits were almost four times the level of his predecessor Jimmy Carter. During his two terms the U.S. went from being the world's biggest creditor to becoming the world's biggest debtor. This debt-fueled prosperity enabled Reagan to win 59% of the vote in 1984 -- close to the 60% threshold which defines a "landslide."

Every period of economic growth has been accompanied by the growth of markets and debt creation. The debt may be government or private debt; either will boost short term demand. World War II illustrated that enormous government debt creation can be an enormous economic stimulus. But investor debt also fosters economic growth as the 1920s showed. And consumer debt also grows the economy as it did in the Bush II era until the housing bubble burst.

Government debt helps businesses since they have been turning government red ink (deficits) into their black ink (profits) for as long as contractors have sold products to government.

Republicans and their media allies were acutely concerned with deficits during the Obama years when they generally trended downward. But since Trump's inauguration Republican concern with deficits has become negligible right as they have risen rapidly.

Since almost all government spending becomes income for our citizens, without our deficit the demand for goods and services would fall by about trillion dollars. Unemployment would rise and the economy would contract; Trump’s popularity would fall if he kept his promise to eliminate deficits.

Thus, the Trump prosperity, such as it is, rests on a foundation of deficit creation.

Rick Jones

West Haven

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