To understand the future, individuals must have an understanding of the past. This article, extremely well researched, projects Mr. Trump’s policies through January 2025, if he is re-elected in 2020.
In 1945, World War II ended. Harry Truman was President and in 1948, President Truman was re-elected even though every political poll showed that Truman would not be re-elected. War is very expensive and the National Debt of the U.S. was very great when Truman left office in 1953. Dwight Eisenhower was elected President in November, 1952, and assumed the office of president in 1953. Ike traveled to Korea after his election in November, 1952, and set in motion an armistice on the Korean peninsula.
Eisenhower’s team was shocked by Truman’s defense budget that was 6% higher than Ike thought necessary. Under Eisenhower’s direction, the inherited Truman Budget was cut by 30%. The reduction of Truman’s budget was swift and drastic. The new policy doctrine of the Eisenhower administration called for a sharp reduction in both land and naval military forces, coupled with a significantly increased reliance on nuclear weapons.
During Ike’s eight years as president, Ike did something that no president has ever done again. Ike increased the Gross National Product ( GNP ) year after year and at the same time REDUCED the National Debt of the U.S. year after year. This was a truly remarkable achievement ! ( Editor’s Note: During the Eisenhower administration, the U.S. was on the gold standard. That of course was a driving standard for financial responsibility. )
Every president who followed Ike: 1) John Kennedy, 2) Lyndon Johnson, 3) Richard Nixon, 4) Jerry Ford, 5) Jimmy Carter, 6) Ronald Reagan, 7) George H.W. Bush, 8) Bill Clinton**, 9) George W. Bush, and 10) Barack Obama did not even come close to Eisenhower’s economic accomplishments. Then along came Donald Trump.
Regardless of your viewpoint of Donald Trump, he is probably the smartest individual in the area of economics and international finance ever to occupy the office of president. Trump has indeed improved the economy of the U.S. with his policies since his election in 2016. It is obviously true that Trump has a great interest in his legacy. He wants history to state that he was a great president. The projection is that if Trump is re-elected in 2020, he will do to things to establish his legacy. They are: 1) Continued GNP growth each year during of his second term, and 2) A yearly budget surplus during each year of his second term.
If Mr. Trump accomplishes these two goals that would indeed be enough to get his likeness on Mt. Rushmore. Trump has already demonstrated that he can accomplish goal 1. He has demonstrated that goal in his first term. To accomplish a budget surplus, congress and the president must pass a budget in which the federal tax revenues exceeds the federal expenditures for the year. Budget surpluses reduce the U.S. National Debt while budget deficits increase the U.S. National Debt.
Presidents George W. Bush and Barack Obama irresponsibly increased the U.S. National Debt the most by their reckless spending. While it is indeed true that a small yearly budget surplus will do very little to reduce our U.S. National Debt because the National Debt is so great. But four years of yearly budget surpluses under Mr. Trump in his second term will demonstrate that Donald Trump has accomplished something that has not been accomplished since President Eisenhower.
Also, the stars next to Bill Clinton’s name denote that Bill Clinton had a yearly budget surplus for one year during his eight years as president. Additionally, the U.S. was taken off the gold standard during Richard Nixon’s presidency and presently the U.S. dollar floats against other currencies in the world on the international markets. Lastly, while the U.S. National Debt is excessive, the dollar remains fairly strong because many other countries throughout the world are even more irresponsible in their GNP/National Debt ratio.
R. Van Conoley