The basic economics of this is fucking bonkers. Let’s be clear, that is $10.5 trillion being taken out of the economy, a lot of it on programs that bring collective benefits and are at least supposed to reduce collective costs. So, lots of negative environmental and social externalities are about to be created, and many of these impacts don’t have market values. The $10.5 trillion though has a market value, and the negation of that from the national economy is going to have a huge multiplier effect. For example, the cuts in health care spending don’t just impact people that need the care. It will also be a massive cut in the money going to hospitals, which will mean less staff, doctors, nurses, support staff, working at the hospitals. The people losing their jobs will then not have money to inject into the economy, which means less goods and services bought, etc. Downward spiral. Now, of these massive cuts, how much will be made up by private investment and spending? Next to nothing. Who the hell is going to invest to increase production when there clearly isn’t enough private demand in the economy and when government spending is being cut? In other words, who is going to invest to increase the amount of goods and services their company produces when there is a massive depression in effective demand? It will go into what we’ve been seeing for decades now, stock buybacks and speculative investments. When it all collapses, which it will, the state will step in to rescue these crooks.
This is such a stupid, a-historic and failed economic philosophy. Look at Oxfam’s reports on the social costs of austerity in Europe. Look at the utter failure of austerity in the EU. The truth is, they are just going to massively loot the commons and public resources. They know this, we know this, their silly economic arguments are for the victims of these policies that don’t realize they’re victims and are cheering on their own destruction. The 20% or so of the population that voted and are cheering on horrible things they don’t seem to realize are horrible.
There is no popular mandate what so ever to do anything like this and it is going to be an epic disaster. Trump will enter as the most unpopular major party nominee ever and given the horrible impact of these policies, it will probably be the high-water mark.