$4.7 Trillion Fiscal Year 2020 Budget Proposal Sparks Controversy

President Trump’s $4.7 trillion fiscal year 2020 “Budget for a Better America” proposal, calling for an additional $8.6 million for a Southern border wall, while making domestic cuts, increasing military spending, and making major reductions or overhauls of Medicare and Medicaid, ignited immediate debate upon its release March 11.

Villanova University Economist David Fiorenza offered his reaction to the main aspects of the budget proposal:

•          Defense- President Trump continues to pour funding into defense and the military, as promised in his campaign speeches. This is an expansion of government at the same time decreasing expenses in other agencies.

•          Agencies cuts- Such as DEP, the Interior, EPA, - These agencies operated with a larger than life budget with plenty of cushion for expenses that were not in line with department goals. These departments should be operating under a Zero Based Budget approach.

•          The budget proposal does little to address the large annual deficit and the overall debt of the federal government, except for the agencies cuts. The method to control the debt would be to make further cuts to agencies and keep taxes stable.

•          Making changes to the welfare system with mandatory work requirements would help somewhat with the debt.

•          The economy needs to continue its growth with GDP and employment gains to bring revenues into the federal government to control the annual deficit.

•          Higher wages in the next year, as we have seen the past year, will help somewhat with the tax revenue situation.

•          Clearly, Congress and the President will need to curtail expenses by 10% per year to tackle the annual deficit issue.

To speak with Fiorenza, click on his headshot above, email mediaexperts@villanova.edu or call 610-519-5152.