The results of November’s mid-term election are a coin-toss. It might be a blue wave, or it could be millions more trolling the establishment by voting Republican. Either way, be sure to grab the popcorn.
But the nation’s finances may not be laughing should the Democrats find a way to seize the House, warns a former White House economic adviser.
Speaking in an interview with Reuters on Monday, Gary Cohn thinks President Donald Trump will work with the Democrats on infrastructure. And this could mean more debt piled onto the growing $22 trillion national debt.
“If the Democrats win the House I will be shocked if the first thing they don’t do is infrastructure,” he said.
“I think they’ll do a trillion dollars, trillion and a half dollars of infrastructure, and the president will sign it. Another trillion dollars of debt, here we come.”
Cohn revealed something interesting about President Trump, one that should worry fiscal hawks.
He stated:
“The president looks at these economic decisions in a very simple lens: ‘I want to grow the U.S. economy, I want to create jobs, I want to create wage growth,'” the former Goldman Sachs executive noted.
“If the federal government can do something that helps [him] accomplish those three things, he will be 100 percent inclined to do it. I mean, that’s literally how he looks at it.”
If this is how Trump operates, then be afraid. Be very afraid.
Meanwhile, Trump has pledged to spend $1 trillion on infrastructure over the next 10 years. Despite vague proposals and promises to make a concrete announcement at anytime, Trump hasn’t done anything of substance. And this is a good thing.
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