Monday , September 21 2020
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Banana republic watch

Summary:
Trump’s at it again: President Trump on Saturday attempted to bypass Congress and make dramatic changes to tax and spending policy, signing executive actions that challenge the scope of powers between the White House and Capitol Hill. . . . He mischaracterized the legal stature of the measures, referring to them as “bills.” Congress writes and passes bills, not the White House. The documents Trump signed on Saturday were a combination of memorandums and an executive order. Actually, Trump is right; they are “bills”. The WaPo is confused because back when the US was still a constitutional republic it was Congress that passed “bills”, just as Congress appropriated money for border walls, set tariff rates, declared wars, etc. Now Congress gets to decide National Bird

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Trump’s at it again:

President Trump on Saturday attempted to bypass Congress and make dramatic changes to tax and spending policy, signing executive actions that challenge the scope of powers between the White House and Capitol Hill..

He mischaracterized the legal stature of the measures, referring to them as “bills.” Congress writes and passes bills, not the White House. The documents Trump signed on Saturday were a combination of memorandums and an executive order.

Actually, Trump is right; they are “bills”. The WaPo is confused because back when the US was still a constitutional republic it was Congress that passed “bills”, just as Congress appropriated money for border walls, set tariff rates, declared wars, etc. Now Congress gets to decide National Bird Watching Day.

The president said if he wins reelection he would seek to extend the deferral and somehow “terminate” the amount of taxes that are owed. The payroll tax funds Social Security and Medicare benefits, and it’s unclear what will happen to those programs without the money.

Why would these programs need tax money? Can’t we just borrow money to pay future SS and Medicare recipients? Trump understands MMT even if you guys still believe in myths like the need to actually pay for government programs.

PS. Yes, I know that this is all clown show stuff and that Trump’s not serious. But although Trump will never be an actual dictator, he certainly enjoys playing one on TV.

PS. Speaking of banana republics, file this under the good (Asia, Africa, Australia), the bad (Europe and Canada), and the ugly (US and Latin America.) Yup, we’re becoming a banana republic.

Banana republic watch

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Scott Sumner
Scott B. Sumner is Research Fellow at the Independent Institute, the Director of the Program on Monetary Policy at the Mercatus Center at George Mason University and an economist who teaches at Bentley University in Waltham, Massachusetts. His economics blog, The Money Illusion, popularized the idea of nominal GDP targeting, which says that the Fed should target nominal GDP—i.e., real GDP growth plus the rate of inflation—to better "induce the correct level of business investment".

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