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Why People Are Unhappy About Trump's Cabinet?
#1
[Image: 161219114452-trump-budget-director-780x439.jpg]

President-elect Donald Trump has nominated conservative Republican Congressman Mick Mulvaney to be his budget director. Mulvaney has made it very clear he thinks America's $19 trillion debt is too high and needs to come down. Budget hawks are thrilled.

http://money.cnn.com/2016/12/19/news/eco...index.html
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#2
"He's not going to back down," says Maya MacGuineas, president of the Committee for a Responsible Federal Budget. "That is the advocate we need at this point because debt is so high as a share of economy."
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#3
There's just one problem: Mulvaney's record on spending and deficits is out of sync with a lot of Trump's plans.
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#4
Trump campaigned on an economic plan to cut taxes for businesses and individuals, make no changes to Social Security, and spend up to $1 trillion on infrastructure.
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#5
The Committee for a Responsible Federal Budget warned that Trump's campaign proposals would add more than $5 trillion to the debt in the next decade.
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#6
"No one in Washington can quite figure out the appointment of deficit hawk Mick Mulvaney to head OMB," says Greg Valliere, chief global strategist at Horizon Investments. "I don't know how he's going to work."
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#7
Now Mulvaney will be in charge of preparing Trump's budget proposals to Congress.
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#8
Here are three ways the views of Trump and Mulvaney clash:
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#9
1. Trump wants to spend. Mulvaney doesn't: The stock market has shot up since Trump was elected president. Some of that rally is because investors believe Trump will spend more money, especially on infrastructure.

But Mulvaney has been against infrastructure spending in the past, especially if it's not clearly paid for.

"Trump is a big spending Keynesian in some respects. How does a big spending Keynesian coexist with Mulvaney?" wonders Valliere.
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#10
2. Mulvaney doesn't like 'magical thinking': The Trump team argues that it is fiscally conservative because Trump will be able to grow the economy enough to pay for many of his tax cuts and other plans.

Most economists call this "magical thinking." They are skeptical Trump (or anyone else) can get the economy going much more than 2% to 2.5% -- far lower than the 4% Trump has promised.

In the past, Mulvaney railed against "gimmicks" that politicians use to try to argue their policies are paid for, notes MacGuineas.
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