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Trump Budget Based on $2 Trillion Math Error
Trump Budget Based on $2 Trillion Math Error
One of the ways Donald Trump's budget claims to balance the budget over a decade, without cutting defense or retirement spending, is to assume a $2 trillion increase in revenue through economic growth. This is the magic of the still-to-be-designed Trump tax cuts.
nymag.com




Even without the double-counting error, this would still be a ridiculous claim.
The current US GDP is $18.6 trillion, so that $2 trillion is more than 10% of our current GDP. Last year's nominal GDP growth was less than 2%. How much growth do you think this tax cut would have to generate in order to pay for itself?
You may wish to distinguish between nominal and real. Nominal GDP is 19T (1Q, 2017 advance) and nominal GDP has risen 3.93% the past year from 18.281T (1Q, 2016 revised).
Who knew math was so complicated? But no wonder he managed to bankrupt 3 casinos...
Why would this surprise anyone?