Defence, Defence, Defence spending is always on the agenda when taking into account a republican government. However, Donald Trump tried to distinguish himself from other candidates with promising to maintain spending on federal government programmes in healthcare and pension.
Many voters have chose to support him on his plans in not cutting any parts of the social security programmes or Medicare and Medicaid, which was promised in May 2015. President Donald Trump asked lawmakers on Tuesday to cut $3.6 trillion in government spending over the next decade.
The new budget introduces a increase in spending in defence and border security, with the promise to build a wall on the border between Mexico and America. Whilst the two budget announcements were mentioned in Trump’s manifesto, a reduction in health insurance for the poor, food stamps and other parts of the social safety net was not.
Many believed that Trump was in line to make changes for the better, with Trump previously profession as a business man, the expenditure plan was seen to help create jobs. However with the cut in Medicare and Medicaid does not help those who are in need of health care be provided with the adequate level to increase living standards across the less well off states of America.
Although, the budget has little chance of passing congress without large revisions, The Economist expresses ”it reinforces the shift away from promise in his campaign and towards a more convention republican orthodoxy on policy matters”, which explains what many right wing republicans would prefer to hear. To increase spending on policing, to reduce levels of crime and to build a defence that will protect America from terrorist threats and international conflicts in North Korea and Syria.
The cuts in the social security will impact many Americans that are of retirement-age, as the world is suffering from an ageing population and working age has now increased in years, one cannot stress how important it is for Trump in the next election to win votes.
However, as the US congress is mainly controlled by Republicans they will potentially vote in favour of the proposal. Trump’s plans offer the republicans the cuts they have been asking for, according to statistics from the National Opinion Research Center in the University of Chicago. 70% of Republicans believe that the federal government spends too little on law enforcement, with gun crime causing havoc in America for the last few years. The democrats do not believe that is the case, with 45% of Democrats wanting more spending.
The social security aspect does not go well with the Republicans, with just 50% believing that the government spends a little amount on social security, while 62% of democrats believe more should be spent. The divide between policies in the democrats and the republicans seem to be returning back to the ages, with factors such as the level spent on national defence a problem for the Republicans. The party believe that more needs to be done to reduce levels of terrorism and the desire to get involved with foreign issues makes it extremely important to allocate their resources to defence.
Trump’s administration has also wants to raise the airline passenger security fee by $1 to $6.60 per one-way trip, which would generate $530 million for the transportation Safety administration. The White House said its proposed cuts would help higher growth and pay for themselves by generating an additional $2 trillion in revenue over 10 years. However, Lawrence Summers the former economic adviser to ex President Barack Obama, said that the current government were double-counting that money by saying it would help close budget deficits but also reduce tax rates, which seems to be an interesting point.
The reduction in tax will help increase the division between the poorer side of the US and the richer side. With the reduction in social security and benefits will make it harder for those who are struggling, in dealing with a higher level of inflation and a reduction in payments, making vital services such as food and health care difficult to pay for.
A budget that requires a reduction in income distribution for a country like america can be seen as dangerous, for a government looking to improve on their relations with the working class. Donald Trump wants lawmakers to cut at least $610 billion from Medicaid and more than $192 billion from food stamps over a decade. He seeks to balance the budget within 10 years a clear example of a change that could affect the america people.
There is some new spending in Trump’s plan for fiscal year 2018, which starts in October. The Pentagon would get a spending hike, and there would be a $1.6 billion down payment to begin building a wall along the border with Mexico, which was a central promise of Trump’s presidential campaign. Although, the President did highlight that the Mexicans will pay for the wall, seems as if that plan backfired.
With a budget reduction alongside a reduction in social offerings, such as providing for the poor or improving in foreign aid, is a choice between not helping or providing for the poor or reducing the investments in america. As a core capitalist structure which heavily reliant on foreign direct investment and the business sector to provide jobs for american citizens; Trumps administration will not jeopardize their plan to build a “stronger” America, with deals with China formulating quite well.
Trumps first priority is to reduce the gap between China ‘s fasting growing economy and America’s stable and strong economy. However, by doing so Trump is forgetting the task at home and that is to build a country that can reduce its very large income gap and providing vital services that can increase the living standards in America.
Federal aid to states would shrink by 3 percent, though the cuts would fall most heavily on states that backed Trump’s Democratic rival Hillary Clinton, with 4.8 percent drop, while those that backed Trump would see assistance cut by 1.2 percent.
Some may feel that they will be left behind whilst Americas economy would grow. This feeling was the similar feeling that was felt by many in the lead up to BrExit. Many Britons in the North felt that only London was reaping the rewards from being in Europe.
A danger that can cause some Americans wanting a change, the economy growing is seen vital but to leave people behind should not be part of a plan or else the Republicans may suffer a loss in the next general election and we will not be seeing Donald’s face in Politics again.