U.S. House Reveals Budget That Balances

Earlier this week, we covered President Donald Trump’s proposed budget. It’s not perfect, but it’s a budget that actually reduces the deficit. By 2027 there would still be a $720 billion deficit , but that’s better than the $1.5 trillion we’d end up with in absence of Trump’s budget. While I was happy that the deficit would at least be cut in half, it would be nice to have a surplus.

We haven’t had a balanced budget since the Eisenhower Administration (contrary to popular belief, the Clinton surplus was nothing more than an accounting trick), and who better to fix the books than a career businessman? The House Budget Committee unveiled a budget of their own, and it’s one Trump should enthusiastically adopt.

The House Budget Committee unveiled its Building A Better America 2018 budget Tuesday, which is balanced and achieves a $9 billion surplus in 10 years and increases GDP growth to 2.6 percent.

“Our budget is one of sustainability, smaller government, stronger national security, and greater freedom for individuals,” the committee states. “The status quo is unsustainable spending, higher deficits and debt, higher taxes, bigger government, and more federal control over the lives of Americans.”

The budget not only balances within a decade, but aims to increase economic growth by implementing tax reform and reducing government regulations, as well as reforming several government programs to ensure taxpayer dollars are used efficiently and appropriately.

H/T Washington Free Beacon

Not only does the House budget actually balance, it does so with less optimistic GDP growth assumptions as Trump’s budget. The GDP growth rate is important, because it’s an indicator of economic health. When GDP is growing faster, there are less unemployed people (leading to less expenditures on social services, and more tax revenue).

While a $9 billion surplus isn’t that much (our government spends roughly $10 billion a DAY, for context), it would be the first budget surplus since 1957, when Eisenhower yielded a $2.2 billion surplus (in non-inflation adjusted dollars).

Overall, the budget achieves $6.5 trillion in deficit reduction. In absence of it, there will be an additional $9.4 trillion added to the debt by 2027.

Obama spent too much, and none of that spending acted as a “stimulus.” In fact, if you see how the market reacted to Trump’s victory, it’s clear that Obama’s policies were a sedative, while the policies Trump has proposed (a repeal of Obamacare, lower taxes, and immigration enforcement) are viewed favorably by the market.

Obama was the first president since WWII to never see even a single year with 3 percent economic growth, and that was because of, not in spite of, his fiscal policies.

Share this if you’re ready for a balanced budget in Washington!

By Matt

Matt is the co-founder of Unbiased America and a freelance writer specializing in economics and politics. He’s been published... More about Matt

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