Hormats Says Trump Policy Limited by Debt, Deficit

The video discusses fiscal challenges, focusing on the constraints of a rising deficit and the need for infrastructure spending. It explores the balance between economic growth and fiscal stimulus, emphasizing the importance of managing deficits over the long term. The discussion includes potential policy proposals, such as combining infrastructure and tax reform, to appeal to various political groups and achieve sound long-term growth.

What is a major concern of the Freedom Caucus regarding fiscal policy?

• Increasing infrastructure spending

• Expanding social programs

• Rising deficit projections

• Reducing tax rates

Why might a big fiscal stimulus be unnecessary in a growing economy?

• It might not create jobs

• It could lead to inflation

• The economy is already expanding

• It would decrease the deficit

What is a potential long-term consequence of continuous fiscal stimulus?

• Increased job creation

• Higher economic growth

• Large future deficits

• Improved infrastructure

What is a suggested strategy to pass both infrastructure and tax reform?

• Focus only on tax reform

• Focus only on infrastructure

• Separate bills for each

• A combined policy bill

What is a challenge in passing infrastructure spending under a reconciliation bill?

• Reconciliation bills are only for tax cuts

• Reconciliation bills are not designed for large spending increases

• Reconciliation bills are limited to social programs

• Reconciliation bills require unanimous support