Economics
The Secret Behind Growth in Trump’s America Is Deficit Spending
- President’s deficits are getting results as output picks up
- Bond markets unfazed, inflation subdued; but fiscal hawks fret
Donald Trump at the White House in Washington, D.C.
Photographer: Zach Gibson/BloombergThis article is for subscribers only.
Halfway through Donald Trump’s first term, it’s getting easier to piece together an account of how his policies are supposed to drive economic growth.
And the economy is, in fact, expanding pretty fast –- but not necessarily for the reasons Trump said it would. The president promised to squeeze more American growth out of businesses and foreigners. Instead it’s the government, deploying its balance sheet via deficit-spending, that’s doing the work.