Where Did the Money Go? US Edges Closer to Fiscal Cliff
Daily Kos • • business
Key Points:
- Trump promised significant economic benefits from tariffs, including savings accounts for children and payments to farmers, but these promises have not been fulfilled, leaving Americans with an unexpected $300 billion in debt.
- The tariff revenues were not held separately but were absorbed into the U.S. Treasury, meaning the money is already spent, and the government must issue new bonds to cover the debt, risking a downgrade in credit ratings and higher interest costs.
- Recovering the tariff payments will involve costly legal battles primarily benefiting large corporations, while ordinary citizens who paid higher prices are unlikely to see compensation.
- The financial fallout is expected to damage Trump’s political standing and may prompt Republicans to recognize the severity of the crisis, with calls for impeachment and urgent political action ahead of the
