Bessent:
"We can both grow the economy and control the debt. What is important is that the economy grows faster than the debt. If we change the growth trajectory of the country, of the economy, then we will stabilize our finances and grow our way out of this."
Impossible! Reinhart & Rogoff 101: Above 90% Debt to GDP.
Every new $1 of debt produces substantially less growth.
Debt expands faster than growth at a parabolic rate. https://x.com/themarketsniper/status/1925993677576348127
With a substantial portion of the debt increase from the Big Beautiful bill ending up in coffers of wealthy Americans, you have to ask where they will be allocating the extra $$ they receive?
Will they benefit Main St i.e the economy? No because the rich has a lower propensity to spend, they save more of those money than if they are given to the poorer segment of society.
But they could allocate more of those savings into the equity market, real estate market -making them pricier and eventually possibly losing a chunk of it when these markets fall into doldrums.
Hence the tax cuts are not stimulatory to the economy as everyone in Wall St would want you to believe.
