Trump swung his knife fiercely, but government spending skyrocketed against the trend: What is the solution to the fiscal crisis?

2025-02-27 2213

In the first month since President Trump took office, US government spending has increased instead of decreased, despite a series of measures he has taken to cut spending. This phenomenon highlights the enormous pressure faced by the US fiscal system, especially against the backdrop of an aging population and an expanding debt burden.

Trump's Cutting Measures

After taking office, Trump froze billions of dollars in foreign aid and fired over 20000 federal workers.

Elon Musk, the person in charge of budget cuts, claimed to have saved billions of dollars.

The reality of increased expenditure

The expenditure records of the Ministry of Finance show that the expenditure on medical and retirement plans, as well as interest payments, exceeded the saved funds.

During the period from January 21st to February 20th, the overall government expenditure was about 710 billion US dollars, higher than about 630 billion US dollars in the same period last year.

Image: In the month following Trump's return to the White House on January 20th, overall federal spending was higher than the same period last year

The challenge of structural imbalance

Independent budget experts point out that population aging and debt burden inflation are the main reasons for the increase in expenditure.

Maya MacGuineas, Chair of the Federal Budget Accountability Committee, stated that the promises of retirement and healthcare plans are too high compared to income, leading to structural imbalances.

White House response

The White House has stated that Musk's Department of Efficiency (DOGE) is fulfilling Trump's promise to cut waste and fraudulent spending.

White House spokesperson Karoline Leavitt emphasized that President Trump will continue to guide this work until the government truly serves the people and is governed by the people.

The challenge of reducing targets

Musk and Trump's goal is to cut the $6.7 trillion federal budget by $1 trillion, but Trump has promised not to reduce the benefits of Social Security pensions and Medicare.

These two programs accounted for more than a third of federal spending in the last fiscal year, and the cuts will infuriate millions of Americans.

The dilemma of debt repayment expenses

Trump is almost unable to reduce debt expenditures (which accounted for 13% of last year's budget), otherwise he will face the risk of default and disrupt the global financial system.

summarize

Despite a series of spending cuts taken by President Trump after taking office, US government spending increased instead of decreasing in the first month, highlighting the complexity of the fiscal crisis. The aging population and the expansion of debt burden are the main reasons for the increase in expenditures, and cutting expenditures on key projects such as social security and medical insurance will face significant political and social resistance. In the future, finding a balance between cutting spending and ensuring people's livelihoods will be a major challenge for the Trump administration.

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