Trump’s designated de-regulation czar, Elon Musk, says he can eliminate the national debt starting with $2 trillion cuts in the federal budget.[1] But it will take a massive cut to Social Security and Medicare to get there.
So, when Musk says It’s going to involve “hardship” for the middle class and, but not billionaires, he means it.[2],[3]
Let’s do some simple math.
Musk’s $2 trillion cuts represent nearly one-third of $6.75 trillion US annual budget. Social Security, Medicare, Defense, Veterans Affairs, and debt service account for $4.4 trillion, or roughly 65% of government spending.[4]
That leaves $2.35 trillion dollars for everything else. Taking away Musk’s $2 trillion in unspecified cuts that leaves $350 billion for everything else – an 85% cut in programs vital to the well-being of all Americans.[5]
So, what has to go?
· Highways and bridges,
· disaster relief,
· federal bank-deposit insurance,
· the departments of Agriculture, Homeland Security and Justice,
· all U.S. embassies,
· the Environmental Protection Agency, the Small Business Administration, and NASA (well, NASA would likely get a budget boost for new Space X projects), and
· nearly all welfare, income-support, food-stamp and childhood-nutrition programs.
But wait, there’s more.
Trump’s “economic plan” includes tax cuts for corporations and wealthy individuals that will cost $975 billion per year.[6] Trump’s planned increase in the defense budget to more than $1 trillion a year will cost an additional $200 billion a year.[7]
With $1.175 trillion in new costs, the $350 billion dollars that was left for everything else becomes a negative $825 billion. All federal programs, including federal law enforcement and the courts, would be gone and we’d still be in the hole.
Where will Trump make up the difference? He couldn’t touch Veteran’s Affairs without losing veteran support for Republicans for decades to come. Also, the government can’t default on the national debt.
All that’s left then is Social Security and Medicare.[8] To make up for the $825 billion annual shortfall, Social Security and Medicare benefits would have to be cut by at least 35%.
So, when Musk says he can cut $2 trillion from the federal budget it means he will shut down the entire federal government and use $825 billion from Social Security and Medicare to pay off Trump’s billionaire friends.
Does this sound like an economic plan for prosperity? The math is pretty simple and the answer is no.
[1] Musk Wants $2 Trillion Cut from US Budget. It’d be difficult.
[2] Elon Musk says Trump's economic plans could cause 'temporary hardship'
[3] Trump tells billionaires he'll keep their taxes low at $50 million fundraising gala
[4] How much has the U.S. government spent this year?
[5] Budget of the United States Government
[6] Trump’s Tax Cut-A-Rama Total So Far: $9.75 Trillion
[7] Conservatives Are Gearing Up for a Major Military Expansion Under Trump 2.0
[8] If Musk and Trump want to cut federal spending by $2 trillion, they’ll have to come for Social Security and Medicare
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