It should be noted that US President Donald Trump has once again set aside Republican orthodoxy on debt and spending by announcing a budget agreement with the president of the House of Representatives, Nancy Pelosi. Consequently, it is considered that this probably entails a return to the trillions of dollars.
Likewise, it is necessary to mention that Nancy Patricia Pelosi is an American policy and member of the Democratic Party. She is the speaker of the House of Representatives of the United States since January 2019, she is the only woman who has held that position and is the highest-ranking elected woman in the history of the United States.
Now, it is appropriate to mention that on one occasion, the US president said he would eliminate the federal debt of $ 22 billion. Even so, the annual budget deficit is in the process of exceeding $ 1 billion a year, this could be conferred on bipartisan spending increases and its tax cuts, without any real expectation of a change in trajectory at any time.
End of automatic budget cuts
The agreement, which must still be approved by Congress, finalizes automatic budget cuts as a result of a confrontation over the debt limit in 2011 when the new Republican majority in the House held the federal debt authority hostage until that President Barack Obama accepted a straitjacket.
In fact, under the terms of the agreement, Republicans managed to secure $ 738 billion in defense expenses by 2020 and $ 741 billion by 2021, including funds for overseas operations that are not subject to budgetary limits, while Democrats, They obtained $ 632 billion in 2020 and $ 635 billion in 2021 for domestic spending. That equates to a $ 320 billion increase in expenses over two years compared to the lower maximum budget limits that would have reduced expenses at the end of this year.
In this way, it has been said that Trump has given a nod to the budget cut, even so, it is considered that since taking office, he has silently silenced Republican hawks, giving priority to the Department of Defense financing and cutting taxes.
Meanwhile, Pelosi has maneuvered to increase spending on national discretionary programs by more than $ 100 billion since Trump took office.
Source: Steven T. Dennis and Erik Wasson | Bloomberg
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