Monterey Herald

Trump’s accomplish­ments?

- — Wilbur L. Chambers, Carmel

I had to chuckle at Murray Macdonald’s list of President Trump’s accomplish­ments which generally matched my list of his disasters. A strong economy even before the pandemic arrived? He spent one trillion dollars of public funds (in other words, tax dollars) to give a slight tax break to lowincome workers, and large tax breaks to assist corporatio­ns that were doing quite well in a long but strong economic recovery. A few increased their number of employees as promised, but many spent the gift to repurchase their own stocks, thus reducing the total number of stocks outstandin­g but not increasing their production to any great extent, which in turn, raised the price of their stock, but had little or no effect on the equity of the corporatio­n. To encourage quick growth, he pressured the Fed to lower the bond interest rate to near zero, a step usually reserved for times of recession or depression. Because of our current disastrous situation, the Fed is talking about going into a negative return rate. Would you buy a bond that paid you no return? Probably not. The only buyer would be the Fed making purchases with newly minted dollars. Good idea. Look how well it has worked for Venezuela. Japan is using the same method since its debt payment is currently more than its total annual tax income. They also are short of employees that are willing to work in the factories, and won’t allow immigrants who would do those jobs. That sounds a little familiar too.

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