4 ms·

> The Republicans are not going to cut the debt Well, they are also massively cutting state worker jobs. Plus the tariffs will bring in tax money as well. I'm

> The Republicans are not going to cut the debt Well, they are also massively cutting state worker jobs. Plus the tariffs will bring in tax money as well. I'm not sure what the net effect will be of these together with the tax cuts.

spoaceman7777 2y ago
The Kalshi market for this has had 2:1 odds against them even reducing government spending, let alone lower the annual deficit (and lessening the debt is right out). The last Republican president that managed to cut annual spending was Eisenhower. (Obama and Biden both pulled it off twice though.)
kmos17 2y ago
There are some important caveats to that logic: - the share of the budget spending from these worker cuts is minuscule, even the overall cost of all federal worker is a small percentage of spending, the bulk of spending is in entitlements and defense + debt repayment from deficit spending (which tax cuts always increase) - if tariffs work at making manufacturing come back to the US then the tariff revenues will decrease since fewer products will be imported, and while they are in effect they are a tax increase which will slow down economic activity since they will directly affect consumer spending (unlike a tax increase on high earners would)
soco 2y ago
It's definitely not an easy answer. Cutting the involvement, or the support given by the state in everyday lives can have about any support for the individuals. And this goes beyond the impersonal numbers of the "tax money", with longer term effects we just don't really know yet. I also argument that the current administration doesn't care about the long term effects on the little guy, but maybe that's just me.
eigenspace 2y ago
That's like cutting off your feet to save weight in a running race. Yes, those government workers cost money, but no, cutting them will not improve the fiscal situation in the USA. The jobs are not being cut in anything even close to a thoughtful or intelligent way. Even putting aside the obviously moronic ones like getting rid of IRS staff who bring in truckloads of money for pennies of spending, most of these cuts are just going to cause more chaos and inefficiencies than they prevent. E.g. USAID may seem like 'waste' to sociopathic creitns, but it also serves a very deliberate purpose in furthering the USA'S interests abroad and keeping the international community aligned with the USA and open to US businesses

spoaceman7777 2y ago

The Kalshi market for this has had 2:1 odds against them even reducing government spending, let alone lower the annual deficit (and lessening the debt is right out). The last Republican president that managed to cut annual spending was Eisenhower. (Obama and Biden both pulled it off twice though.)

kmos17 2y ago

There are some important caveats to that logic: - the share of the budget spending from these worker cuts is minuscule, even the overall cost of all federal worker is a small percentage of spending, the bulk of spending is in entitlements and defense + debt repayment from deficit spending (which tax cuts always increase) - if tariffs work at making manufacturing come back to the US then the tariff revenues will decrease since fewer products will be imported, and while they are in effect they are a tax increase which will slow down economic activity since they will directly affect consumer spending (unlike a tax increase on high earners would)

soco 2y ago

It's definitely not an easy answer. Cutting the involvement, or the support given by the state in everyday lives can have about any support for the individuals. And this goes beyond the impersonal numbers of the "tax money", with longer term effects we just don't really know yet. I also argument that the current administration doesn't care about the long term effects on the little guy, but maybe that's just me.

eigenspace 2y ago

That's like cutting off your feet to save weight in a running race. Yes, those government workers cost money, but no, cutting them will not improve the fiscal situation in the USA. The jobs are not being cut in anything even close to a thoughtful or intelligent way. Even putting aside the obviously moronic ones like getting rid of IRS staff who bring in truckloads of money for pennies of spending, most of these cuts are just going to cause more chaos and inefficiencies than they prevent. E.g. USAID may seem like 'waste' to sociopathic creitns, but it also serves a very deliberate purpose in furthering the USA'S interests abroad and keeping the international community aligned with the USA and open to US businesses