tax cuts will be extended, wouldn’t have been under Harris or democrats. Lower regulation and an attractive tax regime encourages domestic growth. That’s the aim here.
Having experience doing consulting to government in a past life you need someone like Musk to remove all the pointless and inefficient jobs and spending . Savings and lower rates will be the only thing that saves that horrendous US debt and structural deficit. They won’t be able to raise taxes enough to resolve it, as business simply leaves. Hence the lower tax growth story coupled with DOGE.
I completely agree the reckless previous government spending is a large part of the growth - the record 6-7% deficit spending of GDP. Absolute insanity. Not sustainable. So yes a growth scare is coming/here, always was, can’t kick the can down the road forever. No one should ever spend a record 6-7% deficit of GDP during a boom. But they did. Now the debt levels are becoming unsustainable.
Something needed to change, change is here. Let’s see if it works - it might not. But at least it’s a different approach trying to resolve some serious issues.
BHP Price at posting:
$39.27 Sentiment: Buy Disclosure: Held
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