From what I've read, the deficit looked like a huge problem and turned out to not be a problem from WWII to 2008. That's the situation most economists, finance leaders and regulators grew up in.
But, the demographic crisis means that moving forward our growth in entitlement spending for the growing population of seniors is far outpacing our growth in GDP from our slowing population of workers.
We can't tax or cut out way out of this. Elon's cuts are going to be performative at best. Real cuts would put tens of millions of seniors, vets and disabled people into destitution. Taxing the billionaires more would be nice. But, taxing them to zero would only paper over a few years of the problem.
The only way out I see is through massive investment to increase per-capita GDP long term. As a super duper liberal, I'm gung ho on "Bring manufacturing back!" in the form of
1. Re-prioritize trade schools and trade skills so we can actually perform high-skill work in factories if/when we build them.
2. Do everything we can to catch up with China making locally-built green energy tech dirt-cheap and highly effective.
3. Figure out how to incentivize the market to local build the interconnected web of advanced manufacturing capabilities needed to produce high tech goods fast and cheap.
I see the work of https://www.hadrian.co/ as an example of what I'm talking about. I'm starting to see some senators act like they need to stop talking about it and actually do something about it. But, the "best" I've heard from Trump is "Drill, baby. Drill!" and "Tariffs are magic."
If Trump laid out a plan for how to target tariffs surgically and use those proceeds to build up manufacturing, I'd be on board. But, he hasn't. Instead, he has made it clear his only plan is to create chaos, achieve performative concessions, and declare personal triumph while netting great harm for everyone in the end.
