02-08-2025, 12:45 PM
(02-08-2025, 12:12 PM)M T Wrote: I’m somewhat surprised that people aren’t making plans for when the current administration is history. Maybe there will be a 4 year hiatus in Title IX but what will happen then?
I think it's possible things will return to status quo ante.
If you have had a basic econ class, you learn that national GDP is composed of four components; consumer spending, business investment, government spending and net of exports and imports. The export / import balance changed from a minor surplus in 1970 to a deep deficit of $800 bils. annually by 2005, improved through 2010, then resumed a downward plunge...it's almost $1 trillion annually now. Consumer spending, at best, is likely at a standstill given that consumer debt has increased 20% since 2021 (from $14 trillion to $17,943 trillion). The administration is clearly attempting to significantly reduce government outlays, leaving business investment as the necessary economic savior. Perhaps it is the intent, then, in combination with tariffs, to dramatically ramp up U. S. business investment by reshoring manufacturing with a subsequent reduction in trade deficit.
If that's the result, then the current policies are likely to extend past four years. If it fails, then the old system will probably return. I offer no opinion as to the likelihood of success or failure.
Audaces fortuna iuvat
