Understanding Make America Great Again Economics

The Democrats call Donald Trump’s economic policies: MAGAnomics. President Biden says MAGAnomics is “harming middle-class families, senior citizens and American manufacturing.” But how can economic policies that want to Make America Great Again be harmful?

Perhaps the Democrats don’t fully understand the principles of MAGAnomics.

MAGAnomics principles are rooted in the same principles that allowed our country to go from the birth of a nation to the largest, most prosperous economy in the world in about 150 years. Other countries were hundreds or even thousands of years older. This remarkable accomplishment happened, I believe, because of four basic principles.

Our economy encouraged 1) individual freedom. As long as an individual did not infringe on the basic rights of anyone, an American was free to pursue whatever interests they desired.

With that came 2) individual responsibility. As long as an individual was mentally and physically able, everyone pretty much took care of themselves. (They had family, of course.)

We had very 3) low rates of taxation, so an individual knew whatever was earned was kept.

And lastly, we had a very 4) limited role of government. Beyond providing a legal system, defense of the country and leadership functions, the government pretty much stayed out of the way.

Individual freedom, individual responsibility, low rates of taxation and a limited role for government made America great.

The Biden administration’s policies are exactly opposite to all four of these principles. His actions limit individual freedom. He replaces individual responsibility with social responsibility. He raises the tax burden on all Americans, and he wants a much larger role for government.

The results of Biden’s economic policies have led to stubborn inflation, much less opportunity and a decline in the standard of living especially for the middle and lower classes. That made Americans feel that they were not great anyone.

MAGAnomics wants to reverse that with the goal of creating a great economy providing opportunity to all Americans that will lead to a higher standard of living.

The first step is to unleash business. That means an environment with far fewer regulations. It also means that more reasonably priced capital must be available. And that there is general price stability in the economy, which is crucial during the planning process.

Business expansion will increase manufacturing, which increases the demand for workers. That will raise wages.

Maganomics will ensure price stability so the economy can achieve real growth from the business expansion. That can be done most efficiently by increasing the production of energy. The increased production reduces energy prices which account for about 30% of the CPI.

With stable prices and rising wages, the standard of living increases. Price stability will reduce interest rates, making the purchase of a new home within the reach of the middle class.

Regarding senior citizens, Maganomics realizes that while there should always be a limited role for government, there is, nonetheless, a role for government. That includes taking care of the elderly regardless of their situation.

The problem is that both Social Security and Medicare are going broke. There must be a solution that preserves benefits for existing recipients while ensuring that these essential programs are solvent well into the future.

Somewhat conflicting is the principle of low taxation. Many prominent economists have studied this problem, and the basic conclusion is that there were no good options. Raising taxes or reducing benefits are not good solutions.

Economists like to say that when there is no good solution to a problem, the next best thing to do is to find the least bad solution.

The MAGAnomic solution may be to raise the retirement age gradually up to at least 70. That means workers will be paying more into the system and fewer people will be collecting benefits. Since people are living longer, that may be the least bad solution.

That solution will save both Social Security and Medicare.

Trump’s MAGAnomics’ policies are good for the middle class because they raise the standard of living, are good for senior citizens because it saves both Social Security and Medicare, and are very good for American manufacturing since it expands business activities. That is exactly opposite to what President Biden said.

Perhaps the Democrats will have a different view of MAGAnomics now that it has been explained. The average American knows that these policies will lead to a better quality of life. They will also lead to Americans feeling great again.

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