Sorry if this sounds totally obvious, but these latest taxs cut reminds me of the early nineties, when I first heard about the Republicans’ strategy of cutting taxes while the government was in deep debt. In my ingenuity, I thought that it was not a responsible way of doing things. Instead, what they should be doing, if they wanted to reduce the government burden on the individuals, is to identify which government programs should be cut, and debt reduction and tax cuts would be the long-term consequence of those spending cuts. But, of course, doing it that way is difficult. Eventuality, I understood what they were doing: cutting government income was the easiest way to create a huge debt crisis that would eventually force cuts to government spending.
They are now back at it again with their dishonest trick: at a time of record government debt levels, they are cutting taxes without immediately identifying compensating spending cuts. But there will be cuts, most probably the first victim is going to be health insurance for vulnerable children; they are already saying that there is no money for that. And, after that, they will go after Medicare, Medicaid, and Social Security. They will not touch, they most probably will even increase, security spending and corporate welfare.
They are hoping that their voters will be blinded by their pittance tax cuts, without realizing that they will come at the expense of higher debt, more corporate welfare, and less social spending. Their are betting the country on the stupidity of the majority of their own voters. And I also think that, if they were correct about these cuts accelerating the growth of the economy, the result would be a bubble that would pop in a few years, causing a depression worse than that in the 1930s.
These are indeed revolutionary times. Right now, I have no idea how the United States will look ten years from now.