President Trump declaring America bankrupt and announcing that in 2018 is of course totally hypothetical. Even so, it is very possible for that to happen because someone soon will have to declare America bankrupt. Who better qualified to negotiate the financial restructuring of the United States than someone who has gone through multiple bankruptcy experiences? Is Trump a man born for such a time as this? Donald Trump’s resume in bankruptcy is quite impressive.
- 1991, Trump’s Taj Mahal in Atlantic City, Chapter 11 bankruptcy
- 1992, Trump Plaza Hotel in Atlantic City, Chapter 11 bankruptcy
- 2004, Trump Hotels and Casinos Resorts, Chapter 11 bankruptcy
- 2009, Trump Entertainment Resorts, Chapter 11 bankruptcy
Enter President Donald Trump:
Trump gets into office and inherits the 2017 recession. By 2018, Trump declares America bankrupt because “Obama lied and the economy died”. Trump tells the taxpayers, the debt holders, and those expecting entitlements that all will have to make concessions and negotiate a great deal to make America solvent again. The following might be some of Trump’s hypothetical proposals along with some of his hypothetical explanations (in parentheses) as to why.
Trump’s common sense plan for America’s financial restructuring.
- Cut all entitlements 10 percent immediately and cut them by one percent more each year for 10 years. (That one percent would just be one percent less than the CPI inflation rate.)
- Eliminate early Social Security retirement at 62 for those over 52. (People are healthier and live longer than when this was enacted.)
- Gradually raise retirement age to 70 by 2035. (People are healthier and live much longer than when this was enacted.)
- Very strict rules to qualify for Social Security Disability. (Vocational rehab and incentives for employers to make accommodations for disabilities would replace the current state of paying people to sit and vegetate.)
- Raise minimum pay to $15 an hour over three years to get low-income people off Federal assistance programs. (Either taxpayers subsidize those with low-income or businesses will have to actually pay them a living wage. In the first instance, taxpayers pay and in the second, it is passed on as higher prices to consumers. There is no free lunch, even at MacDonald’s. The government should not be buying people’s votes with your taxes)
- Eliminate any federal contribution to unemployment insurance. (You’re just going to have to take one of those $15 an hour minimum wage jobs until you can find something better.)
- Get rid of those millions of illegals for good. (If we stop giving them assistance, and if we do not allow employers to hire them, they will go home all by themselves.)
- Cut the number of people receiving food assistance costs by requiring adults receiving it to do some community service in return. (I think it says somewhere in the Bible that if someone will not work they should not get to eat.)
- Eliminate Medicare, Medicare, Obamacare, VA care, and go to a single payer health system that limits the one payer medical costs to about 10 percent of GNP. (You could still supplement this system with your own private insurance, cash or even charity support.)
- Reduce prison population by half by letting out most low-level non violence offenders. (We need to modify the war on drugs. Government should target high level criminal enterprises not the small fry. Trying to stop users that abuse drugs is an expensive losing war when half the population uses chemicals. It mostly militarizes local police forces.)
- Establish a one percent national sales tax. (Everyone should have some skin in the game.)
- Restructure the entire federal tax code to increase government revenue by 10 percent. (We will do that without hurting American businesses.)
- A five percent one time wealth tax on net worth over 5 million. (It could be paid over 10 years. And the rich could avoid the tax entirely by creating new jobs that bring the government equal new tax revenue over those ten years.)
- Cut federal government employees by 20 percent by eliminating and consolidating agencies and making government more efficient. (There is a lot of waste in government and we can no longer afford a government so big.)
- Freeze government salary and pension increases to CPI minus one percent for the next 10 years. (Federal employees get paid much more than those doing similar work in the private sector.)
- Cut defense costs by 20 percent over ten years by restructuring and other common sense efficiencies. (For example: close most overseas military bases. All American bases should be removed from Europe and Korea. What are we still doing there? They have plenty of wealth to take care of themselves. The military needs less support people, less politically correct social engineering types, less commissioned officers. What it does not need is to have women in combat positions. The Military needs more non-commissioned special forces, more nuclear forces, more high-tech energy weapons development. Make the military lean and very mean but bring most of our people back home after a war is over.)
- A 25 percent tariff on imported energy products. (It will not only collect revenue, it will help America develop its own resources to become totally energy independent.)
- Put a 5 percent tariff on products from Mexico. (We will only do that until the wall is paid for.)
- Proportional tariffs on nations that export to America more than 10 percent of what they import from America. (Letting nations like China rip us off is not fair trade.)
- Deregulation of many things that made American companies uncompetitive and less productive. (The federal government does not need to be in everybody’s business)
Some of that might sound liberal, but Trump is old school liberal within his common sense capitalist ways. Trump is not a Communist like those that took over the Democratic Party.
A plan like this could reduce federal government outlays by 1/4th and increase government revenues about 15 to 20 percent. That would more than balance the budget. Would it make America solvent again. Sure. Will it pass congress? Some of this would have to occur anyway if a balanced budget amendment to the Constitution were passed or some impending debt default forced Congress to take action.
When Trump declares America bankrupt in 2018 and restructures the financial system is that going to make America great again? Not unless other changes are also made that reestablishes morality, strong families, real education, work ethics, patriotism, integrity, parental rights, rule of law and God. Only God can make America great, but most in America have no room for God or they have an American idol in place of the real God. Ted Cruz is actually the best choice to lead the fight for the positive changes in values but Donald Trump is more likely to get the popular support needed for restructuring.
No matter who you vote for, some of this or even more than this will be required to make America solvent again. Donald Trump is the King of Bankruptcy and Trump very well could be ruling America during America’s bankruptcy and restructuring. Donald could even be America’s first and last king.