Trumponomics Daily—Friday, March 17

March 17, 2017, 4:19 PM UTC

It’s often said in Washington that the best sign of a compromise is a final product that pleases nobody. But what about an initial offer that alienates nearly everybody? President Trump’s first budget serves up plenty to turn off Members of Congress from both parties, ripping into an array of treasured programs, from slashing support for Meals on Wheels to eliminating funding entirely for rural development agencies that aid many of his own voters.

In so doing, the proposal represents a victory of ideology over strategy. It ignores the entitlement growth driving federal spending, a chief concern of conservative deficit hawks, to focus instead on the discretionary budget that makes up a shrinking slice of the pie. In other words, Trump’s blueprint maximizes political pain while minimizing savings gain.

Reactions from Republican lawmakers have been decidedly mixed. A few praised the proposed $54 billion surge in defense funding. More noted, pointedly, that the president proposes and the Congress disposes: They’ll consider the administration’s suggestions but will craft a spending plan that reflects their own prerogatives. That should be fine by the White House. The next budget resolution will fast-track tax reform by allowing it to clear the Senate with a simple majority. And streamlining the tax code presumably remains a higher priority for Trump than, say, cutting home heating assistance to poor people.

Tory Newmyer

Must Reads

5 Reasons Why Donald Trump’s Meeting With Angela Merkel Matters So Much [Fortune]

The first face-to-face meeting between the leaders of Western powerhouses comes with high stakes for coordination on trade, immigration, climate change, and other issues.

Donald Trump’s Tax Plan Is Really Good for Donald Trump [Fortune]

Trump could save $3.2 million a year if a surcharge on rental income alone is repealed.

Boeing and Lockheed Martin Are the Big Winners in Trump’s Defense-Heavy Budget [Fortune]

The two defense contractors stand to reap a multibillion-dollar windfall from Trump’s proposed military buildup.

Rex Tillerson Says Pre-Emptive Force Against North Korea Is an Option [Fortune]

The nation’s top diplomat, on his first tour of Asia since leaving Exxon Mobil to take on the assignment, raised the possibility of a military confrontation with the isolated nuclear power.

Loose change


Michael Flynn Was Paid More Than $67,000 By Russian Firms, New Documents Show [Fortune]

Trumpcare’s Lonely, and Seedy, Supporter [NYT]

Edge or Liability? White House Ties May Cut Two Ways for Goldman [NYT]

Obtaining Land for Trump’s Border Wall a Daunting Task, Experts Say [WSJ]

Read More

Great ResignationDiversity and InclusionCompensationCEO DailyCFO DailyModern Board