The most talked about topic in Washington is that whether Senator Mitch McConnell (R-Ky) deliberately trying to throw the elections to the Democrats, the root cause of this being the interviews that the Senator gave to Bloomberg and Reuters past Tuesday and Wednesday.
Senator McConnell identified “entitlements” — that’s Washington code for Social Security, Medicare and Medicaid — as “the real drivers of the debt” and called for them to be adjusted “to the demographics of the future. By this he meant that he wants to cut benefits.
In the interview with Reuters, McConnell said that failure of GOP to repeal the ACA was a disappointment of the Congress from Republican point of view. He further added that if after the elections the Republicans have the votes, they would then try again.
He also supported Trump administration’s decision of going to the court against the lawsuit which Texas and other red states brought in the federal court and stated that there was nothing wrong in that.
The novelty of the social insurance program of GOP for hostility is the undersupply on the given program which also happens to be the foundation of the voting basis for low and middle income Americans, despite the budget which was passed which huge tax cuts.
But the conclusion is not pure. The Treasury of the US tabulated the federal deficit for the financial year 2017-18to be at $779 billion which was near the tabulations of the Congressional Budget Office, who calculated it to be $739 billion. The deficit is huge considering the fact that the government has been spending in order to assist the recovery from the recession of 2008 and is also the largest one since 2012.
Therefore considering that payroll taxes and premiums form the major part of the covering of the spending on Social Security and Medicare, the fiscal policy of the Republican and the payouts to the affluent is what really drives the deficit.
Source: LosAngelesTimes, Newschamber.com
I am an amateur content writer, who is currently pursuing a Masters in Finance from ICFAI Business School. In this highly volatile Business Market, I find no better way to keep myself updated than to write about it and reflect my own thoughts as words.