Carry a Big Stick

The U.S. federal government reported last week that it ran a deficit of $214 billion in August, the fifth largest deficit for any single month in US history.

But, more to the point, cutting the U.S. corporate tax rate to 21% and boosting tariffs on select countries and products is removing a huge subsidy to growth for the rest of the world. The U.S. is the dominant economy in the world and when it stops subsidizing foreign countries, who have not followed free market principles, economic pain spreads.

BulletProof

But after cutting tax rates and regulation, Friday's GDP report demolished their theory. Real GDP grew at a 4.1% annual rate in the second quarter, and is up 2.8% in the past year.