NY Mag: Trump Budget Director Admits Their Goal Is High Inequality, Not Low Deficits

The following is an excellent article written by Jonathan Chait on the NY Mag website on April 12, 2017 titled “Trump Budget Director Admit Their goal Is High Inequality, Not Low Deficits” and I quote:

“Trump Budget Director Admits Their Goal Is High Inequality, Not Low Deficits”

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Budget director Mick Mulvaney, left, wants to grab all the money that the government gives to poor people and give it back to the rich. Photo: Jonathan Ernst/Reuters

For more than a generation, the Republican Party has single-mindedly pursued the goal of maximizing economic inequality. They have been almost as single-minded about not describing this as their priority. Republicans say their goal is reducing out-of-control deficits, or reducing out-of-control surpluses, or promoting economic growth, or saving Social Security and Medicare. But Donald Trump’s budget director Mick Mulvaney, in a new interview with CNBC’s John Harwood, basically admits that what he cares about is reducing transfers from the rich to the poor:

Bad spending, to me, in terms of its economic benefit, would be wealth-transfer payments. It’s a misallocation of resources. Infrastructure is sort of that good spending in the middle, where even if you do misallocate resources a little bit, you still have something to show for it. It’s tangible, it may help economic growth, and so forth. At the other end of the spectrum, at the very other end, is letting people keep more of their money, which — while it can contribute to the deficit in a large fashion — is the most efficient way to actually allocate resources. It’s a little less important to me if infrastructure adds to the deficit. And I’m really not interested in how tax reform handles the deficit.

The place to begin understanding Mulvaney’s ideas here is where he says “letting people keep more of their money … is the most efficient way to actually allocate resources.” The premise of this statement is that the market distribution of income is sacrosanct, and progressive taxation is thus both morally wrong (because it takes money that rightly belongs to high-income people who earned it on their own) and inefficient. Mulvaney concedes that cutting taxes for high-income earners can “contribute to the deficit,” but this fact is “less important.”

On the other end of the spectrum, Mulvaney says “wealth-transfer payments” are “bad spending.” Again, this follows from his belief that redistributing resources from rich to poor offends both morality and economic efficiency. And there in the middle lies infrastructure — which, since it’s not redistributive, is not as morally or economically offensive as transfer payments. The Republicans are cross-pressured on infrastructure spending, which tends to be quite popular; their default position tends to be to spend a lot of money on it under Republican presidents, as they did under George W. Bush and would like to do again under Trump, while opposing it as reckless, unaffordable spending under Democratic presidents.

What makes Mulvaney’s comments so unusual is not only their frankness, but also their comprehensiveness. Republican politicians tend to segregate their discussion of taxes and spending, so that they can frame their opposition to transfer payments as concern about deficits, while framing their desire of regressive tax cuts as being unrelated to deficits. Mulvaney, who is known in Washington as a budget hawk’s budget hawk, is essentially conceding that deficits have nothing to do with the Republican fiscal agenda.”

(THE REPUBLICAN PARTY, OVER THE YEARS, TALK ONE WAY ABOUT SAVING SOCIAL SECURITY AND MEDICARE AND OTHER PROGRAMS, AND THEN THE REPUBLICAN-CONTROLLED CONGRESS VOTES AGAINST IT.  THAT’S WHY IT’S ESSENTIAL THAT THE VOTERS WATCH PROGRAMS LIKE C-SPAN TO TRACK THEIR VOTING RECORDS, AS WELL AS WATCHING CBS’s 60 MINUTES HOW EYE DOCTORS OPERATE ON THE POOREST PEOPLE IN AFRICA TO RESTORE THEIR SIGHT FROM CATARACTS AT A LOW, LOW COST, SHOWING THIS IS PRACTICING WHAT THEY PREACH.  AT SOME POINT, THOUGH, ALL NATIONS MUST PRACTICE VOLUNTARY FAMILY PLANNING BECAUSE YOU CAN REDUCE THE COST OF HEALTHCARE BUT YOU CAN’T ELIMINATE IT ENTIRELY SO OTHER VOLUNTARY CONTROLS MUST BE PRACTICED.

LaVern Isely, Progressive, Overtaxed, Independent Middle Class Taxpayer and Public Citizen and USAF Veteran

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About tim074

I'm a retired dairy farmer that was a member of the National Farmer's Organization (NFO). Before going farming, I spent 4 years in the United States Air Force where I saved up enough money to get my down payment to go farming. I also enjoy writing and reading biographies and I write about myself as well as articles and excerpts I find interesting. I'm specifically interested in finances, particularly in the banking industry because if it wasn't for help from my local Community Bank, I never could have started farming which I was successful at. So, I'm real interested in the Small Business Administration and I know they are the ones creating jobs. I have been a member of Common Cause and am now a member of Public Citizen as well as AARP. I have, in the past, written over 150 articles on the Obama Blog (my.barackobama.com) and I'd like to tie these two sites together. I'm also on Twitter, MySpace and Facebook and find these outlets terrifically interesting particularly what many of these people did concerning the uprising in the Arab world. I believe this is a smaller world than we think it is and my goal is to try to bring people together to live in peace because management needs labor like labor needs management. Up to now, that hasn't been so easy to find.
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