Kirjoittanut Dave, 13.10.2024 at 20:37
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Your taxes going down under Trump makes sense because of the 2017 tax cuts, which did provide breaks for a lot of Americans. But most of the benefits went to corporations and wealthier folks. While middle-income earners got a temporary break, those cuts are set to expire in 2025, whereas corporate tax cuts are permanent. The fact is the cuts didn't stimulate the growth enough to cover the revenue loss. The CBO even projected that these cuts would add $1.9 trillion to the deficit over the next decade.
I don't think it's fair to put the blame for inflation entirely on the Biden administration. Inflation is affecting the whole world. Europe is seeing similar spikes. It's primarily caused by the aftermath of COVID and the war in Ukraine. Even if Trump was president now, you would be dealing with the similiar inflation.
In Montenegro, we've had a similar experience with the Evropa Sad Act, whose creators were inspired by Trump's 2017 tax policies. They introduced wage increases and tax cuts. People had more money in their pockets. But just like in the US, these policies led to disaster. Inflation skyrocketed, and higher incomes were quickly eaten by rising prices for everything. The reforms didn't address deeper issues in the economy, and now we're dealing with similar problems.
Both the US and Montenegro examples show that while tax cuts can offer short-term relief, they often lead to long-term issues if not done well. What's interesting is that the politicians behind the reforms lost power before the negative effects of their policies kicked in. So when inflation surged and the economy struggled, they managed to shift the blame on the new government, even though their reforms caused the problems.
This allowed them to make a comeback, even winning the presidency and forming a new government. Their politics, much like Trump's, focused on populism. In fact, the leader of this movement often retweets Trump. But their rise to power didn't last long. As the economic fallout from their policies continued, their popularity tanked. What everyone thought would be new and changing politics turned out to be reckless, and they're expected to lose the next elections.
That said, I hope things improve for you. Oddly enough, I also kinda hope Trump wins - though not for the reasons you might think. In my view, it might be worse for the US and the world, but better for the EU in the long run. During Trump's presidency, the EU became more independent, pushing for a more centralized and unified stance on both economic and geopolitical issues. But once Biden came into office, the US returned as a reliable partner, and that momentum in the EU stalled. So while I don't think it's the best outcome for the US, a Trump presidency could force Europe to become more self-reliant again.