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Trump’s Inheritance
The second estimate of Q3 US GDP, released on Wednesday, painted a similar picture to the advance read: The world's largest economy performed quite well last quarter.
The headline growth print was an unrevised 2.8%, solid and hardly indicative of a looming recession, although I suppose the bears among you will argue these things tend to come out of nowhere.
Wednesday's release found GDI tallied at 2.2%, meaningfully lower than the headline GDP print, but still healthy. The average, which the N
Trump is inheriting a decent economy, which needs strategic long term adjustments, not shock therapy. Not his strength.
Trump, via DOGE, will simply push the financial responsibility for various programs (currently being managed by the states – but paid for with Federal money given to the states) down to the states and at the same time, stop the Federal government from sending money to the states to pay for such programs.
Then he will declare “success” at reducing Federal spending “waste”.
Meanwhile, the states will have to either raise taxes or borrow money to offset the decline in Federal money that is no longer available because the people will still need and want such services.
The populace will cry “fowl” and see through Trump’s shenanigans.
Won’t the populace just blame immigrants and China for it?