I am not an expert on anything, nor am I locked into any single-minded philosophies which disregards twenty-first century economics and common sense. Most of those ideas came from the mid-twentieth century when technology was different. Many people believe those old philosophies are not longer valid. The recent corporate tax cut is the product of one of those beliefs.

The tax cut is supposed to create jobs, decrease imports, increase exports, and increase tax revenue to reduce the additional deficits and debt. In the short term, some jobs may be added over the 190,000 per month we have averaged for the last several years. Short term, because the new tax laws make replacing humans with robots more economical. Many other factors will determine what import and export changes occur. The deficit increase may be over two trillion with a good economy and stable interest rate. Neither will continue very long.

Interest rates will continue to rise as the Fed moves to normalize their rates and finances so they have ammunition for the next recession. Raising interest means more bonds need to be sold to pay for additional debt payments. Having to sell more bonds means higher rates will be required. Currently China buys a large part of these bonds. If they stopped or dumped their $2 – 3 Trillion reserves, we couldn’t sell new ones to pay for government operations. Interest rates would skyrocket. A greater national debt is a greater national security danger. .

Another concern is the money corporations are supposed to bring back with the cheaper tax rate. It’s mostly in U.S. Bonds so when they sell them off to do something here, bond prices may drop.

These are a few of the downside complications to giving money to corporations that are already awash with money.

For the past few decades, the Republicans have spoke out of both sides of their mouths. Cutting taxes during Republican controlled years and complaining about deficits during Democratic years. Assuming the next President is fiscally responsible, the new President must raise revenue to pay down our massive debt. Raising taxes to save our country is a hard campaign promise to run on when so many idiots vote!