Center for American Progress

How elites profit from the myth of American bankruptcy
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How elites profit from the myth of American bankruptcy

America's fiscal system is strong, but the pervasive myth of imminent bankruptcy allows the Trump administration to implement an elitist economic agenda.

After years of hysterical warnings about a “looming fiscal crisis” from deficits under President Barack Obama, Republican leaders in Congress are suddenly willing to increase deficits for President Donald Trump. This deficit flip-flop is certainly hypocritical, but it also obscures the true nature of the threat posed by Trump.

Trump is taking office at a time when America’s fiscal system is extremely strong. The primary threat is not that America will go broke; it is that America’s fiscal strength will be wasted and abused. Trump and his allies in Congress are poised to privatize America’s fiscal strength to further enrich a wealthy few and give corporations more power over ordinary Americans.

The above excerpt was originally published in MarketWatch. Click here to view the full article.

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Authors

Harry Stein

Director, Fiscal Policy