Feldstein: Can't Continue to Shrink Defense Spending

The transcript discusses Trump's appointment of a military leader, Mad Dog Mattis, and the implications for foreign policy. It covers defense spending, highlighting its decline and potential budget impacts. Trump's economic team choices, including Wall Street insiders, are analyzed, suggesting a shift towards mainstream policies. The discussion also touches on Republican economic programs, focusing on tax reduction and deficit management. Finally, the debate on infrastructure spending is explored, questioning its feasibility and economic necessity.

Why is the appointment of Mad Dog Mattis as head of the Pentagon considered unusual?

• He is known for his aggressive policies.

• He was appointed by President Obama.

• Traditionally, military personnel are not appointed immediately after retirement.

• He is the first marine to hold the position.

What is the current state of defense spending as a percentage of GDP?

• Around 4%

• A little over 3%

• Less than 2%

• Over 5%

What is the expected trend for defense spending over the next decade?

• It will be eliminated entirely.

• It will fall to 2.5% of GDP.

• It will increase significantly.

• It will remain stable.

What is a key reason for Trump's choice of wealthy individuals in his administration?

• They have extensive political experience.

• They are all from Goldman Sachs.

• They align with his populist theme.

• He feels comfortable with them.

What is a central idea of a mainstream Republican economic program?

• Reducing both personal and corporate tax rates

• Increasing corporate tax rates

• Expanding government spending

• Nationalizing key industries

How does Trump plan to fund the proposed $1 trillion infrastructure program?

• Using a series of tax credits to encourage private investment

• By increasing taxes

• By borrowing from international banks

• Through direct government spending

What is a concern regarding the national debt mentioned in the transcript?

• It is decreasing too rapidly.

• It has gotten out of hand and needs to be reduced.

• It is only a problem for future generations.

• It is not a concern for the current administration.