Several months ago, I graded President Trump’s economics (Scoring President Trump's Economics). His newly-announced budget plan, however--where I had given him the benefit of the doubt and a +1–just switched to a -1. What is the macro impact of Trump’s newfound conviction that we need to reduce the public deficit? Ignoring for the moment the foreign sector, there are only two main actors in our economy: the public sector and the private sector. The inescapable accounting logic is that if the public sector spends more than it earns, then the private sector must earn more than it spends.

Source: Forbes May 24, 2017 23:26 UTC