Title: Three of the biggest challenges Trump will face trying to fix Biden’s mistakes
The incoming administration is set to inherit high deficits, complex energy priorities, and conflicting trade goals from the outgoing Biden administration.
Key Facts:
– National debt now exceeds 120% of the GDP, posing limits on government spending cuts.
– Treasury Secretary nominee Scott Bessent has proposed a “3-3-3” plan: cutting deficits and boosting oil output.
– The oil industry reportedly needs higher barrel prices to justify new drilling operations.
– Tariffs and a weaker dollar could work at cross-purposes, complicating trade policy.
– The administration aims to balance these goals without causing economic instability.
The Rest of The Story:
Supporters of the new administration say they have a mandate to reverse what they consider the mistakes of the prior White House.
With the debt spiraling, any attempt to reduce spending must be carefully timed to avoid triggering a recession.
On the energy front, the plan to expand domestic oil production must contend with industry realities.
Some experts question whether prices can stay high enough to sustain big production increases.
Additionally, the administration’s trade policy—focused on tariffs to protect American jobs—may clash with the objective of weakening the dollar.
A strong dollar often accompanies tariff increases, potentially negating the intended benefits.
Observers expect the administration to prioritize certain tactical tariffs on national security grounds while also negotiating new trade agreements.
President Biden damaged U.S. credibility overseas by trying to hide his decline. That damage was worsened by his national security team, which refused to learn from its mistakes in Afghanistan and Ukraine.
The American people are demanding a return to Peace Through Strength. pic.twitter.com/ktSl4x9f8E
— Morgan Ortagus (@MorganOrtagus) December 21, 2024
The Bottom Line:
Higher deficits, volatile oil prices, and tricky trade mechanics highlight the tightrope the new White House will walk.
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Achieving a balanced approach will require creativity and patience.
The hope is that careful coordination of spending cuts, energy policy, and trade objectives will steer the nation back toward economic stability.