Business

Subterms

    More stories

    • 188 Shares169 Views

      in US Politics

      Trump’s cabinet isn’t as anti-Wall Street as voters might want to believe | Robert Reich

      by

      Will anything stop Trump?He’s got control over both chambers of Congress, a tractable supreme court, a political base of fiercely loyal Magas, a media ecosystem that amplifies his lies (now including Musk’s horrific X as well as Rupert Murdoch’s reliably mendacious Fox News) and a thin majority of voters in the 2024 election.He doesn’t worry about another election because he won’t be eligible to run again (or he’ll ignore the constitution and stay on).Of course, there are the midterm elections of 2026. But even if Democrats take back both chambers, Trump and his incipient administration are aiming to wreak so much damage on America in the meantime that Democrats can’t remedy it.The Republican-controlled Senate starting 3 January won’t restrain Trump. Yes, Trump overreached with his pick of Matt Gaetz for attorney general. Apparently even Senate Republicans can’t abide alleged sex trafficking of girls for drug-infested sex parties, but this is a very low bar. (Gaetz denies any wrongdoing.)So, as a practical matter, is anything stopping Trump?Yes, and here’s a hint of what it is: on Friday, Trump picked Scott Bessent to serve as US secretary of the treasury.Bessent is the man Elon Musk derided only a week ago as the “business-as-usual choice” for treasury secretary, in contrast to Howard Lutnick, whom Musk said would “actually enact change”.Musk’s view of “change” is to blow a place up, which was what Musk did when he bought Twitter.Over the last two weeks, Musk has convinced Trump to appoint bomb-throwers Robert F Kennedy Jr to health and human services and Pete Hegseth to defense and to put Musk and Vivek Ramaswamy in charge of cutting $2tn from the federal budget.But Bessent is the opposite of a bomb-thrower. He’s a billionaire hedge fund manager, founder of the investment firm Key Square Capital Management, and a protege of the Maga arch-villain George Soros. (He’s also gay, which the Maga base may not like, either.)Why did Trump appoint the “business-as-usual” Bessent to be treasury secretary? Because the treasury secretary is the most important economic job in the US government.Trump has never understood much about economics, but he knows two things: that high interest rates can throttle an economy (and bring down a president’s party) and that high stock prices are good (at least for Trump and his investor class).Trump doesn’t want to do anything that will cause bond traders to raise long-term interest rates out of fear of future inflation and he wants stock traders to be so optimistic about corporate profits they raise share prices.So he has appointed a treasury secretary who will reassure the bond and stock markets.Stock and bond markets constitute the only real constraint on Trump – the only things whose power he’s afraid of.skip past newsletter promotionafter newsletter promotionBut wait. What about Trump’s plan to raise tariffs? He has floated a blanket tariff of 10% to 20% on nearly all imports, 25% on imports from Mexico, and 60% or more on Chinese goods.Tariffs of this size would increase consumer prices and fuel inflation – driving interest rates upward. (The cost of tariffs are borne by American businesses and households, rather than foreign companies.)Tariffs could also invite retaliation from foreign governments and thereby dry up export markets for American-based corporations – in which case the stock market would tank. (The last time America raised tariffs on all imports – Herbert Hoover’s and congressmen Smoot and Hawley’s Tariff Act of 1930 – the Great Depression worsened.)In short, tariffs will rattle stock and bond markets, doing the exact opposite of what Trump wants.So Trump has appointed a treasury secretary who will soothe Wall Street’s nerves – not just because Bessent is a Wall Street billionaire who speaks its language but also because Wall Street doesn’t really believe Bessent wants higher tariffs.Bessent has described Trump’s plan for blanket tariffs as a “maximalist” negotiating strategy – suggesting Trump’s whole tariff proposal is a strategic bluff. Wall Street apparently thinks tariffs won’t rise much when other countries respond to the bluff with what Trump sees as concessions.Instead, Wall Street expects Bessent to be spending his energies seeking lower taxes, especially for big corporations and wealthy Americans, and helping Musk and Ramaswamy cut spending and roll back regulations.It’s a sad commentary on the state of American democracy when the main constraint on the madman soon to occupy the Oval Office is Wall Street.I suppose we should be grateful there’s any constraint at all.

      Robert Reich, a former US secretary of labor, is a professor of public policy at the University of California, Berkeley, and the author of Saving Capitalism: For the Many, Not the Few and The Common Good. His newest book, The System: Who Rigged It, How We Fix It, is out now. He is a Guardian US columnist. His newsletter is at robertreich.substack.com More

    • 125 Shares179 Views

      in US Politics

      Ireland prices corporation tax loss from Trump policies at €10bn

      by

      Ireland’s prime minister has said the country could lose €10bn (£8.35bn) in corporate tax if just three US multinationals were repatriated to America under a hostile Donald Trump administration.His remarks come just days after Trump nominated the Wall Street investor Howard Lutnick to lead the Department of Commerce with direct responsibility for trade.While Trump has already warned he would impose tariffs on EU imports, Lutnick has singled out Ireland for criticism saying “it is nonsense that Ireland of all places runs a trade surplus at our expense”.Simon Harris said if he was returned as taoiseach in Friday’s general election, he would immediately seek engagement with Trump. He has also proposed an early EU-US trade summit to avert damage in trade ties with the overall European trade bloc.“If three US companies left Ireland it could cost us €10bn [£8.5bn] in corporation tax,” Harris said on Monday while canvassing in Dundrum, Dublin.“I’m not pre-empting it, I’m not saying that’s going to happen, I’m not predicting it, but that is the level of risk that our economy is exposed to,” he said.Ten multinationals account for 60% of Ireland’s corporate tax receipts, with Microsoft, which books some global as well as EU revenues through Ireland, thought to be the single biggest contributor.Ireland’s goods trade surplus with the US is now a record €35bn with Irish goods exports up by 8% in the first eight months of 2024, boosted by the pharmaceutical and chemical sectors.Goods exported to the US totalled €45.5bn between January and August, according to the government’s Central Statistics Office, compared with imports of €11bn for the same period.Harris said he had no reason to believe that Trump was not “serious about pursuing the policies that he has campaigned on”, which includes repatriating jobs and profits that he believes should be homegrown.skip past newsletter promotionafter newsletter promotionHe also referenced the Wall Street Journal article on what it said was the “US tax system blows a windfall into Ireland” fuelling savings into not just one but two sovereign wealth funds, including a €14bn windfall in back tax from Apple on the foot of a European court of justice ruling.“The Wall Street Journal front page gives an indication here” that Trump is intent on action, said Harris.However, he said Ireland would be prepared and would cope just as it did with “Brexit, Covid [and the] cost of living crisis”. More

    • 138 Shares169 Views

      in US Politics

      Scott Bessent: billionaire hedge-fund manager who is ‘all in’ for Trump

      by

      Investor Scott Bessent has been nominated by Donald Trump to serve as treasury secretary. The billionaire hedge fund manager has spent his career in finance and the nomination for this post has been one of the most anticipated in recent days.Here are five things to know about the person who could have vast influence over economic, regulatory and international affairs.His finance careerBessent, 62, from South Carolina, has spent his career in finance, working for macro investment billionaire George Soros and noted short-seller Jim Chanos, as well as running his own hedge fund.As a money manager, he made a large bet on Trump winning after spotting what he called an anomaly in the market – that political and market analysts were too negative on what a Trump victory would mean.The market’s surge after Trump’s election victory, he wrote, signaled investor expectations of “higher growth, lower volatility and inflation, and a revitalized economy for all Americans”.He’s ‘all in’ for TrumpBessent, who did not immediately respond to a request for comment, has advocated for tax reform and deregulation, particularly to spur more bank lending and energy production, as noted in a recent opinion piece he wrote for the Wall Street Journal.He has called for rolling back government subsidies, deregulating the economy and raising domestic energy production. Unlike many on Wall Street, Bessent has also defended the use of tariffs, which are Trump’s favorite economic tool.“I was all in for President Trump. I was one of the few Wall Street people backing him,” Bessent told Stone over the weekend.“Bessent has been on the side of less aggressive tariffs,” said Oxford Economics’ Ryan Sweet, adding that picking him makes the steep tariffs Trump proposed on the campaign trail less likely.He’s one of a fewBessent will take his investing knowledge down a rarefied career path that only a few other prominent Wall Street luminaries have followed: running the US Treasury.Bessent follows other financial luminaries who have taken the job, including former Goldman Sachs executives Robert Rubin, Hank Paulson and Steven Mnuchin, Trump’s first treasury chief. Janet Yellen, the current secretary and first woman in the job, previously chaired the Federal Reserve and White House Council of Economic Advisers.Other examples of US treasury secretaries who have come from finance include Steven Mnuchin, who served under Trump in his first term, and had worked at Goldman Sachs. Henry Paulson, who served as Treasury secretary under George W Bush, was also a Goldman Sachs alumnus, where he had been chairman and CEO.A twisty race to the topBessent, along with John Paulson, had been an early favorite for the job earlier in the year according to a Reuters report at the time. He seemed to be in pole position a week after election day, on 12 November, when Paulson exited the race citing “complex financial obligations”.However, there were many twists in the race for the top position.On 13 November, banker Howard Lutnick, who was leading a transition team to vet personnel and draft policy, emerged as a top contender. Lutnick was reported to have directly lobbied for the Treasury post, even receiving the backing of Trump ally Elon Musk. However, Trump instead picked Lutnick, one of his biggest fundraisers, to lead his trade and tariff strategy as head of the commerce department.The pool of candidates then widened when Rowan, and former Federal Reserve governor Kevin Warsh were under consideration as well as Republican US senator Bill Hagerty, sources with knowledge of the transition process said at the time.The choice came after days of deliberations by Trump as he sorted through a shifting list of candidates. Bessent spent day after day at Trump’s Mar-a-Lago home in Florida providing economic advice, sources said, a proximity to the president-elect that may have helped him prevail.In charge of the world’s largest economyAs treasury secretary, Bessent will essentially be the highest-ranking US economic official, responsible for maintaining the balance of the world’s largest economy, from collecting taxes and paying the nation’s bills to managing the $28.6tn treasury debt market and overseeing financial regulation, including handling and preventing market crises.The treasury boss also runs US financial sanctions policy, has influence over the IMF, the World Bank and other international financial institutions, and manages national security screenings of foreign investments in the United States.Bessent will face challenges, including safely managing federal deficits that are forecast to grow by nearly $8tn over a decade due to Trump’s plans to extend expiring tax cuts next year and add generous new breaks, including ending taxes on social security income.Without offsetting revenues, this new debt would add to an unsustainable fiscal trajectory already forecast to balloon US debt by $22tn through 2033.Managing debt increases this large without market indigestion will be a challenge, though Bessent has argued Trump’s agenda will unleash stronger economic growth that will grow revenue and shore up market confidence. More

    • 163 Shares179 Views

      in US Politics

      Trump’s picks of loyalists for financial posts ensures his economic agenda is unimpeded

      by

      Certain events happen during every presidential campaign. The parties crown their candidates. The candidates debate on live TV, with millions watching. Tens of millions heads to the polls. And at some point in this process, Jamie Dimon will be tipped as the next Treasury secretary.Sure enough, the veteran boss of JPMorgan Chase – Wall Street’s de facto ambassador to the world – was, indeed, linked with the role this time around as the Kamala Harris and Donald Trump campaigns mulled their options in the final stretch of the 2024 presidential election.But as the world came to terms with his victory, and Trump started to piece together his administration, the president-elect made clear in a social media post that Dimon “will not be invited” to join.The people who did get the invite underline why Dimon – one of the most prominent leaders in Corporate America, and head of America’s biggest bank – did not. Considering him for a post might be a time-honored tradition, but this is not business-as-usual.Trumpvalues reputation, establishment and star power. But not as much as he values getting his way.Howard Lutnick, a long-time friend and co-chair of his transition team, remarked during the campaign that Trump “picked unfortunately” last time around. Industrial giants and former military generals did not wholeheartedly embrace his agenda.Not this time.Trump has picked Lutnick, for starters – CEO of the financial services firm Cantor Fitzgerald – as his commerce secretary, tasked with delivering his policy on tariffs and trade.While Lutnick was reported to have directly lobbied to run the Treasury, that job went to the financier Scott Bessent, after days of jostling and speculation.With both appointments, Trump is said to have been wary of appointing a candidate who did not ardently believe in the tariffs and tax strategy at the center of his economic plan for the US.Economists have warned that the introduction of steep tariffs could reignite inflation. Budget experts have warned that Trump’s wider plans could add as much as $15tn to US debt over 10 years.The president-elect wants to keep such caution outside the tent – and has pulled together a band of staunch loyalists to drive through it.During Bessent’s campaign for the Treasury job, he loudly made the case for tariffs, dismissing economists’ warnings as “fundamentally incorrect” in a column for Fox News.Not long after a line was very publicly drawn under the talk of Dimon as Treasury secretary, the Wall Street titan appeared on stage at a summit in Lima, Peru. He wished Trump well, “but I just want to tell the president also: I haven’t had a boss in 25 years, and I’m not about ready to start”.The boss preparing to return to the White House in January has made up his mind. He does not seem prepared to hire anyone who might try to change it – on the economy, or any other key facet of his agenda.Presidential administrations are rarely a broad church. Trump appears to be building a narrow pew. More

    • 113 Shares199 Views

      in US Politics

      Trump picks hedge-fund investor Scott Bessent for treasury secretary

      by

      Donald Trump nominated Scott Bessent, a longtime hedge-fund investor who taught at Yale University for several years, to be his treasury secretary, a statement from Trump confirmed on Friday. The job is one of the most powerful in Washington, with huge influence over America’s gigantic economy and financial markets.The move to select Bessent is the latest as the president-elect starts to pull together the administration for his second term in the White House. The process so far has been marked largely by a focus more on personal and political loyalty to Trump than expertise and experience.In economics, one of the main focuses and controversies of the treasury role will be to deal with Trump’s high-profile and oft-repeated promises to pursue a policy of aggressive new US tariffs in foreign trade – something that is widely feared by many other countries across the globe.Wall Street had been closely watching who Trump would pick for the treasury role, especially given his plans to remake global trade through tariffs.Bessent, 62, has advocated for tax reform and deregulation, particularly to spur more bank lending and energy production, as noted in a recent opinion piece he wrote for the Wall Street Journal.The stock market surge after Trump’s election victory, he wrote, signaled investor “expectations of higher growth, lower volatility and inflation, and a revitalized economy for all Americans”.Bessent follows other financial luminaries who have taken the job, including the former Goldman Sachs executives Robert Rubin, Hank Paulson and Steven Mnuchin, Trump’s first treasury chief. Janet Yellen, the current secretary and first woman in the job, previously chaired the Federal Reserve and White House council of economic advisers.As the 79th treasury secretary, Bessent would essentially be the highest-ranking US economic official, responsible for maintaining the plumbing of the world’s largest economy, from collecting taxes and paying the nation’s bills to managing the $28.6tn Treasury debt market and overseeing financial regulation, including handling and preventing market crises.The treasury boss also runs US financial sanctions policy, oversees the US-led International Monetary Fund, the World Bank and other international financial institutions, and manages national security screenings of foreign investments in the US.Bessent would face challenges, including safely managing federal deficits that are forecast to grow by nearly $8tn over a decade due to Trump’s plans to extend expiring tax cuts next year and add generous new breaks, including ending taxes on social security income.Without offsetting revenues, this new debt would add to an unsustainable fiscal trajectory already forecast to balloon US debt by $22tn through 2033.
      Managing debt increases this large without market indigestion will be a challenge, though Bessent has argued Trump’s agenda would unleash stronger economic growth that would grow revenue and shore up market confidence.Bessent would also inherit the role carved out by Yellen to lead the G7 nations to provide tens of billions of dollars in economic support for Ukraine in its fight against Russia’s invasion and tighten sanctions on Moscow. But given Trump’s desire to end the war quickly and withdraw US financial support for Ukraine, it is unclear whether he would pursue this.Another area where Bessent will likely differ from Yellen is her focus on climate change, from her mandate that development banks expand lending for clean energy to incorporating climate risks into financial regulations and managing hundreds of billions of dollars in clean energy tax credits.Trump, a climate-change skeptic, has vowed to increase production of USfossil fuel energy and end the clean-energy subsidies in Joe Biden’s 2022 Inflation Reduction Act.Reuters contributed to this report More

    • 150 Shares169 Views

      in US Politics

      Trump selects key Project 2025 figure Russ Vought to head budget office

      by

      Donald Trump has chosen Russ Vought, a key architect of Project 2025, the controversial conservative plan to overhaul the government, to be director of the US Office of Management and Budget, a powerful agency that helps decide the president’s policy priorities and how to pay for them.Vought, who was OMB chief during Trump’s first term, would play a major role in setting budget priorities and implementing Trump’s campaign promise to roll back government regulations.Since Trump left office, Vought has been deeply involved in Project 2025, a series of detailed policy proposals for Trump’s second term drawn up by hundreds of high-profile conservatives.Among other measures, Project 2025 calls for a broad expansion in presidential power by boosting the number of political appointees and increasing the president’s authority over the justice department. The project also proposes enforcing laws that make it illegal to mail abortion pills over state lines, criminalizing pornography and eliminating the Department of Education.The project’s authors, Vought included, have also advocated for the reclassification of parts of the federal workforce that would give Trump the authority to fire tens of thousands of government employees.During his election campaign, Trump repeatedly denied he had any links to Project 2025, even though many of its authors were former officials from his first administration. With Vought’s selection, the president-elect has now tapped several former aides with Project 2025 links for key administration roles.During the election campaign, Trump’s Democratic opponents made a concerted effort to raise public awareness of Project 2025 among voters, warning it was a blueprint for a hard-right political shift they said would occur under Trump.Their effort succeeded in making Americans widely aware of the project’s existence, and opinion polls showed voters broadly disapproved of the effort.The Trump campaign expressed increasing annoyance with the project, repeatedly emphasizing that its proposals were separate from the campaign’s official policy platform.Vought wrote a chapter for Project 2025 centered on the management of the president’s executive office. While many of the suggestions he laid out are highly technical, they are for the most part aimed at expanding the president’s authorities and lessening the power of career civil servants.“After months of lies to the American people, Donald Trump is taking off the mask: he’s plotting a Project 2025 cabinet to enact his dangerous vision starting on day one,” said Alex Floyd, a spokesperson for the Democratic National Committee.Trump spokesperson Karoline Leavitt said Trump never had anything to do with Project 2025, and that all his cabinet nominees and appointments were “whole-heartedly committed to President Trump’s agenda, not the agenda of outside groups”.Vought has helped craft several executive orders that could be implemented on day one of Trump’s term, according to two people involved in the project. They include an order instituting schedule F, which would re-categorize thousands of civil servants to enable Trump to fire them should he want to, said those people, who requested anonymity to discuss the project’s internal deliberations.Trump’s other nominees with Project 2025 ties include Brendan Carr, who wrote the project’s chapter on the Federal Communications Commission. Carr is now set to lead that agency.Carr has criticized the FCC’s decision not to finalize nearly $900m in broadband subsidies for Elon Musk’s SpaceX satellite internet unit Starlink, as well as the commerce department’s $42bn broadband infrastructure program and Joe Biden’s spectrum policy.Other Project 2025 contributors who have been named by Trump as officials in his new administration are Tom Homan, Trump’s “border czar”, John Ratcliffe, his incoming CIA director and Pete Hoekstra, Trump’s choice for ambassador to Canada.Stephen Miller, one of Trump’s incoming deputy chiefs of staff, founded a conservative legal and advocacy group known as America First Legal, which contributed to the project.At the OMB, Vought will work with Musk and Vivek Ramaswamy to carry out Trump’s campaign pledge to slash government spending and regulations.Musk and Ramaswamy have been tapped by Trump to co-lead a newly created Department of Government Efficiency, an entity Trump has indicated will operate outside the confines of government. More

    • 88 Shares159 Views

      in US Politics

      Trump picks Howard Lutnick as commerce secretary

      by

      Donald Trump has picked one of his biggest fundraisers for the position of commerce secretary.Howard Lutnick, the billionaire founder of the financial firm Cantor Fitzgerald, will be nominated to serve as one of Trump’s principal advisers on commerce and international trade.In a statement, Trump said Lutnick would “lead our Tariff and Trade agenda” in the role, and also have “direct responsibility” for the Office of the United States Trade Representative, which negotiates trade deals.The appointment hands Lutnick a key role in the implementation of Trump’s plan to impose steep universal tariffs on overseas imports. While economists and corporate leaders have warned the proposal risks increasing prices for Americans, proponents including Lutnick have claimed it will boost the US economy.The businessman, and close ally of Trump, had been tipped for the more powerful role of treasury secretary, an appointment that had the backing of another powerful Trump fundraiser, the tech billionaire Elon Musk.Scott Bessent, an investor and hedge fund manager, has been seen as Lutnick’s closest rival for the treasury. On his social media site last week, Musk wrote: “My view fwiw is that Bessent is a business-as-usual choice, whereas @howardlutnick will actually enact change.”Lutnick was co-chair of Trump’s transition team. He has championed Trump’s plans to use tariffs on foreign imports to build the US economy – a plan many economists believe will lead to rising inflation. He is also a big backer of loosening regulation of cryptocurrencies.Trump has known Lutnick, whom he hailed in Tuesday’s announcement as a “dynamic force on Wall Street”, for decades. A self-described fiscal conservative and social liberal, he has donated to Democrats in the past but recently told the Wall Street Journal that “they have moved away from me”.Cantor Fitzgerald lost 658 employees in the terrorist attacks on the Twin Towers on 11 September 2001. In the decades since he rebuilt the privately held company, it now employs 13,000 people, up from 2,000 before the tragedy.It is so far unclear how or if he will separate his vast business interests from his powerful government role.During a rally at Madison Square Garden last month, Lutnick was riffing on what he thinks “Make America great again” actually means when he explained when he believes the US was sufficiently great: 1900. “At the turn of the century, our economy was rocking,” he claimed. “We had no income tax, and all we had was tariffs.” More

    • 125 Shares119 Views

      in US Politics

      Trump advisers contemplating cuts to Medicaid and other welfare programs

      by

      Donald Trump’s economic advisers and congressional Republicans are discussing possible cuts to Medicaid, food stamps and other government welfare programmes to cover the costs of extending the president-elect’s multitrillion-dollar 2017 tax cut.The cuts could mean new work requirements and spending caps, according to the Washington Post, citing sources involved in the talks, including aides in Trump’s transition team.Extending the tax cuts – most of which are due to expire next year – could add $4tn to the national debt, which already stands at $36tn.But Republicans fear triggering a political backlash by slashing programmes that serve an estimated 70 million Americans to pay for a tax cut that disproportionately benefits the wealthy.The 2017 tax cuts were criticised for being skewed in favour of the rich, with households in the top 1% income bracket receiving a reduction of $60,000 in 2025, compared with less than $500 for those in the bottom 60%, according to the Center on Budget and Policy Priorities.Trump campaigned on extending the 2017 reduction while also vowing to abolish taxes on tips for restaurant workers.Republicans support the extension but worry that the loss of revenue could add to government borrowing – prompting them to search for savings in others areas.In addition to safety net programme cuts, some Republicans are considering re-purposing clean energy funds passed by Democrats.The GOP has warned that the costs of Medicaid – whose claimants can include low-income people, newborns, people who are blind or disabled, and those suffering from certain illnesses – has ballooned with the expansion of the Affordable Care Act, also known as Obamacare.Jodey Arrington, the chair of the House of Representatives’ budget committee, told reporters that a “responsible and reasonable work requirement” could save $100bn in Medicaid costs, while another $160bn could be cut by checking eligibility more than once a year.The Paragon Health Institute, a rightwing thinktank, published a study in the summer proposing other reductions that it said could save $500bn over a decade. It said rule changes to Medicaid recently enacted over the past year by the Biden administration could cost up to $135bn nationally and between $46.3bn and $82.3bn at state level over the next five years.Alterations to food stamps – officially known as the Supplemental Nutrition Assistance Program – could take the form of limiting which items recipients can purchase with benefits or broadening work requirements. The latter proposal was floated in the Heritage Foundation’s Project 2025 blueprint for radically overhauling US government.Qualifying criteria are tailored to assist the poorest households, with eligibility determined by income and household size. A single person with no dependents needs to be earning less than $1,354 a month to qualify. A household with two or more people but earning $1,800 per month would also be eligible.The projected cuts to welfare entitlement programmes come as the Republicans prepare to control the White House and both chambers of Congress following this month’s election.It also coincides with Trump’s choice of Elon Musk, the Tesla and Space X entrepreneur, to head a newly formed Department of Government Efficiency along with Vivek Ramaswamy, his former Republican primary opponent, with the brief of slashing waste from federal spending. Musk has spoken of making around $2tn in spending cuts.The US is currently running a budget deficit at around 6% of its gross domestic product. The national debt held by the public is currently worth around 97% of the national economy.The non-partisan Committee for a Responsible Federal Budget has argued that, without major spending reductions, the deficit would widen significantly in the next 10 years, while the US national debt could soar to 143% of the economy. More