Co-chair of the Donald Trump campaign, Joe Borelli, had a chance to go on CNN to discuss Donald Trump’s economic vision for the country. But when he opened his mouth to talk, he was immediately shut down by CNN’s economic analyst Ali Velshi.
The debate was fairly simple, at least for an economics conversation. Will Donald Trump’s tax plan actually work with the federal budget. Money comes in, money goes out, and at the end of the day we need to have a cash flow that is workable.
Velshi explained that the plan Trump has proposed simply doesn’t add up:
“The top income tax level in America is 39.6 percent. To allow taxes to go down to maximum of 25 percent and allow for Donald Trump’s [spending] increases is preposterous. If he doesn’t get anything else – he gets his expenditure increases and his decreases – we’ll have a budgetary hold of about $9 trillion extra.”
Borelli responded by making a claim that Velshi couldn’t help but jump on:
“Trickle-down economics has actually worked.”
Essentially, Trump’s argument is that the economic growth which will be stimulated by lower taxes and high optimism about the economy. That’s what’s going to take care of the $9 trillion dollar budget hole.
To that, Velshi responds:
“And Donald Trump says we’ll take care of that with economic growth because people will pay less taxes, they’ll feel great about the economy, companies will employ people. That is classic sort of trickle-down economics which actually hasn’t worked over the last 10 or 15 years.”
He also took one final strike at Trump before signing off, explaining that trying to use tax cuts and trickle-down economics simply can’t work in a large nation:
“The thing that you have to understand is that growth, regardless of whether you are talking about America or anywhere else in the world, GDP growth has precious little to do with what a president or an administration actually does. A state is very different than a country…
Presidents get too much blame and too much credit for the economy so the fact that Donald Trump, in his speech, very specifically Joe said, ‘I can do this and it’s going to be easy’ shows that he lacks the sophistication to understand the one basic about economics in America – it’s not easy.”