Economic ‘experts’ strike again to warn about the financial meltdown if Republicans lower taxes and cut spending

 To them it's always the big Doom and Gloom Lie

At the beginning of Joe Biden’s term, former Treasury secretary Lawrence Summers correctly predicted that inflation would worsen if Democrats got their way with massive spending. But now, Summers is no different than Paul Krugman or Mark Zandi of Moody’s Analytics, as he’s “predicting” a disaster and massive debt and deficits if Republicans are elected and their policies are implemented. From Bloomberg News comes this report:

Summers Says GOP Fiscal Plans Set US Up for ‘Liz Truss Moment’

Republican politicians are setting the US up for a ‘Liz Truss moment’ by promoting policies that would widen fiscal deficits and weaken the dollar, former Treasury Secretary Lawrence Summers said.

‘Republicans are talking all about deficit-increasing measures — whether it’s on the defense spending side or on the tax cutting side — with nothing really pointing toward any kind of control, and at the same time making it harder for the country to sell its debt by trashing the currency,’ Summers said on Bloomberg Television’s Wall Street Week with David Westin.

I am having trouble understanding why Summers ignores factual history in order to scare voters into voting for Democrats?

When tax rate cuts were passed by Republicans under President Trump, the Congressional Budget Office, the media, and countless Democrats predicted revenues would drop, and cause a $1.5 trillion increase in the deficit, but that was not true. Instead, real wages rose substantially, and so did revenues. Yet, the public is still fed the lie that the tax rate cuts caused deficits. Now, Biden even claims the cost was two trillion.

Here is a simple question for the media and other Democrats: How does increased revenue cause deficits? The answer is that it doesn’t; the only thing that causes deficits to go up when revenue goes up is overspending.

Now we are told that if the current tax rates are extended, it will cost the government $5 trillion. That is pure B.S. If the current rates stay the same, it costs the government nothing—unless the numbers are compared to made up projections from the CBO. Why should we believe anything CBO says about tax rates and revenues when their previous projections have been so wrong?

Why doesn’t Summers worry about the massive damage to the economy and individuals if Democrats let the current tax rates expire? People are already having trouble paying their bills, so what happens if rates increase and even more of their money is seized? What happens to consumer spending if the greedy government keeps confiscating more money?

Why isn’t Summers worried about the harm to businesses, stock prices, mutual funds, and pension funds if Democrats get their way to jack up corporate and capital gains rates? The decimation of wealth would be overwhelming, yet the cat seems to have gotten Summers’s tongue. Democrats want to raise the corporate rate from 21% to 28%, which would encourage businesses to go overseas, and they want to double capital gains rates to 40%. There is never enough money for Democrats to which they believe they’re entitled, despite not taking the risk or earning the money in the first place.

Republicans want to cut down the size of government, which would reduce spending and deficits; Democrats are always seeking to add government power and people, so why is Summers worried about Republicans instead of Democrats?

Republicans want more secure borders, which would reduce illegals and government spending; Democrats are the ones who are for mass illegal immigration, which increases spending and deficits by absurd amounts.

Republicans want people to have freedom of choice on health care, which forces a competitive and free market, privatizing medicine instead of socializing; Democrats want Medicare for all, including illegals, which would make debt and deficits explode and destroy private sector companies. Yet, Summers pretends he is worried about Republican policies.

Republicans want people to have freedom of choice on energy, vehicles, and appliances; Democrats want the massive Green New Deal, which has cost hundreds of billions already and will cost trillions if fully implemented, destroying tens of millions of jobs. Yet Summers is telling voters to be worried about Republican economic policies.

Republicans want children to have the freedom of choice on where to attend school, enabling a “vote with your feet” accountability system; Democrats want to dictate and decree, and the solution is always more taxpayer money, even if they fail to teach children basic knowledge like math and reading.

Republicans properly want those who take out loans for school to be the ones who pay the loans back; Democrats want taxpayers to eat the loans, which explodes the debt and deficit.

It is the Democrats who believe the solution to everything is bigger government, more regulations, and higher taxes, not Republicans. They are the fascists and authoritarians.

And voters should remember, the media and other Democrats will continually lie to members of the public to get their votes, because all they care about is power.

https://www.americanthinker.com/blog/2024/07/economic_experts_strike_again_to_warn_about_the_financial_meltdown_if_republicans_lower_taxes_and_cut_spending.html

https://www.zerohedge.com/political/texas-oil-regulator-opens-probe-after-earthquakes-hit-permian