Trump's Budget Victory Could Hurt Republicans and US Economy

That Trump managed to push through his budget, a comprehensive economic legislative package, is a strong achievement. But it may cost the Republicans – and in the long run the US economy – dearly, according to US expert Jan Hallenberg.

» Updated:

» Published:

Trump's Budget Victory Could Hurt Republicans and US Economy
Photo: Jessica Gow/TT

Share this article

Trump's extensive, controversial legislative package, which he himself has called "big, beautiful bill", has after many twists been voted through in the House of Representatives. It will have major consequences for the US: Large tax cuts are maintained, costs for defense and to stop immigration increase, while savings affect the state health insurance Medicare and food subsidies for the poor.

Pushing through such a disparate budget package is a major victory for Trump, according to Jan Hallenberg, professor emeritus of political science at the Defense University in Stockholm.

One almost has to go back to President Lyndon Johnson to see a president who is as strong, and who manages to twist the arm of the members of Congress who actually do not want to vote for the bill, he says.

Risk for The Republicans

But the reforms can be expensive for The Republicans. For hours, the Democrats' group leader Hakeem Jeffries tried, before the final vote, to explain the consequences of the budget for ordinary Americans. Now that the proposal has been passed, the question is who can explain the consequences best to the voters.

If The Republicans do not manage to explain the reduction of health insurance, they risk losing the congressional election next year. Some analysts say that it is already clear that they will lose the election, but I think it's a bit too early to say, says Hallenberg.

He reminds that Trump went to the election on not touching health insurance, which was the reason why some voters voted for him.

There will be millions of people who will not have any health insurance in the future. But at the same time, this proposal is well thought out – the cuts for Medicaid will not occur until the turn of the year 2026-2027. Then the congressional election will already have been held.

National debt increases

In the long run, Trump's policy can bring problems for the American economy, Hallenberg assesses.

The American politicians are conducting an irresponsible economic policy. This will have the consequence that the US's already vast national debt increases further.

The national debt is already roughly 100 percent of GDP, he says.

And it may go up to 120-130 percent of GDP when all this is implemented – and then the US state will have to borrow money on the international market. They will manage to do that, but it can become more expensive.

Author

TTT
By TTEnglish edition by Sweden Herald, adapted for local and international readers

More news

Over 300 Korean Workers Flown Home on Korean Air Charter After Georgia Detention

Over 300 Korean Workers Flown Home on Korean Air Charter After Georgia Detention

Green Party Uses Humor in Norwegian Government Talks

Green Party Uses Humor in Norwegian Government Talks

Rubio Affirms US Unwavering Support for Israel's Gaza Goals

Rubio Affirms US Unwavering Support for Israel's Gaza Goals

Ukraine Faces Intensified Russian Drone and Missile Attacks: Is Air Defense Enough?

Ukraine Faces Intensified Russian Drone and Missile Attacks: Is Air Defense Enough?

Thunberg's Convoy Departs Tunisia for Gaza with Aid and Activists

Thunberg's Convoy Departs Tunisia for Gaza with Aid and Activists

1,200 Civilians Affected by Cluster Bombs in Ukraine Since 2022

1,200 Civilians Affected by Cluster Bombs in Ukraine Since 2022

Turkey Court Delays Verdict on Opposition Party Election Case

Turkey Court Delays Verdict on Opposition Party Election Case

320,000 Palestinians Evacuate Gaza City Amid Israeli Military Warnings

320,000 Palestinians Evacuate Gaza City Amid Israeli Military Warnings

Trump's Unique Second State Visit to UK: Royal Welcome Planned

Trump's Unique Second State Visit to UK: Royal Welcome Planned

Starlink Outage Impacts Ukraine's Defense Operations

Starlink Outage Impacts Ukraine's Defense Operations

Australia Faces Major Climate Change Impacts Over Next 25 Years

Australia Faces Major Climate Change Impacts Over Next 25 Years

EU Faces Backlash Over Trade Deal with Trump Amid Criticism

EU Faces Backlash Over Trade Deal with Trump Amid Criticism

Island Residents in Equatorial Guinea Face Year-Long Internet Shutdown

Island Residents in Equatorial Guinea Face Year-Long Internet Shutdown

Trump Urges Israel to Be Cautious After Qatar Attack

Trump Urges Israel to Be Cautious After Qatar Attack

Far-Right Gains Momentum in German Local Elections

Far-Right Gains Momentum in German Local Elections

Lula Defends Bolsonaro Verdict as Upholding Democracy, Not a Witch Hunt

Lula Defends Bolsonaro Verdict as Upholding Democracy, Not a Witch Hunt

Over 100,000 Join Pro-Palestinian Protest in Madrid, Disrupting Cycling Event

Over 100,000 Join Pro-Palestinian Protest in Madrid, Disrupting Cycling Event

Massive Ankara Protest Backs Turkish Opposition Amid Court Case

Massive Ankara Protest Backs Turkish Opposition Amid Court Case

Romania Summons Russian Ambassador Over Drone Airspace Violation

Romania Summons Russian Ambassador Over Drone Airspace Violation

Kirk Murder Suspect Tyler Robinson Not Cooperating with Authorities

Kirk Murder Suspect Tyler Robinson Not Cooperating with Authorities