May 14, 2025
Surpluss
Timothy Birdnow
America just recorded her second largest budget surplus in history with an intake of $258.4 billion after last month's $160.5 billion deficit. This is primarily due to the tariffs imposed by President Trump in concert with a re-invigorated economy due to Trump's policies.
Will it last? The Democrats and old RINO's argue that this is temproary, and will wind down as the economy cools from the extra taxation.
Perhaps, but given the restructuring I suspect that cooling will be offset by the economic growth that is coming thanks to deregulation and sound money policy. Oh, and history does not support the claim that raising tariffs slows economic growth.
America just recorded her second largest budget surplus in history with an intake of $258.4 billion after last month's $160.5 billion deficit. This is primarily due to the tariffs imposed by President Trump in concert with a re-invigorated economy due to Trump's policies.
Will it last? The Democrats and old RINO's argue that this is temproary, and will wind down as the economy cools from the extra taxation.
Perhaps, but given the restructuring I suspect that cooling will be offset by the economic growth that is coming thanks to deregulation and sound money policy. Oh, and history does not support the claim that raising tariffs slows economic growth.
Posted by: Timothy Birdnow at
08:08 AM
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With taxes paid quarterly, talking about monthly deficits or surpluses is the practice of idiots. By the very nature of US finances, we will have two monthly deficits, followed by one month of surplus. Given that spending is on an annual basis, the nature of those monthly amounts is a complete crap shoot.
Posted by: Bill H] at May 14, 2025 08:18 AM (Q7br2)
2
I agree Bill BUT this hasn't happened in decades and it bespeaks a trend of some sort. If it were just an artifact of monetary manipulation we would have had a big suprplus under Biden (followed by a big rise in deficit). That it hasn't happened before now suggests to me something is moving - whether this is a coefficient of rising inflation or an actual rise in income by the government that won't be followed by a 'correction' remains to be seen. But it is a welcome sign to me.
The Biden Administration would have pulled this trick if it were just a fluke.
At any reate it's not really a surplus at all as we still have an enormous national debt. It's like saying your boss giving you a five cent raise means you have a surplus when you owe half a million in college loans. You are still in the red no matter how you look at it - unless you are lying to yourself, of course, which is what the political class does with our national debt.
The Biden Administration would have pulled this trick if it were just a fluke.
At any reate it's not really a surplus at all as we still have an enormous national debt. It's like saying your boss giving you a five cent raise means you have a surplus when you owe half a million in college loans. You are still in the red no matter how you look at it - unless you are lying to yourself, of course, which is what the political class does with our national debt.
Posted by: Timothy Birdnow at May 15, 2025 06:37 AM (JyI4e)
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