(ThyBlackMan.com) Here is what we know, the United States economy, as it is presently called, a “K shaped economy,” is unsustainable. It is just impossible to maintain this economy, without a comprehensive solution to grow Jobs and the economy; a solution, not based on the stock market reaching new highs, but on main street or average Americans becoming participants in future economic growth. The rich can’t keep getting richer, as the upside of the “K” indicates and the poor (main street) continue to get poorer, as the downside of the “K” signifies.
Trump’s two tax cuts, the 2017 Tax Cut and his “One Big Beautiful Bill (OBBB),” dumped trillions of dollars from the United States Treasury in tax cuts into the coffers of billionaires, millionaires, and corporations. The OBBB is estimated to have benefitted the wealthy to, “the tune of $3.4 trillion,” (that’s a lot of money), without achieving the objective the President of the United States, stated it would, “a Blue-Collar Boom.”
Here is what was stated on the White House site on June 24th , 2025, where the “One Big Beautiful Bill,” Trump’s tax cut proposal was promoted: “The One Big Beautiful Bill delivers for the American worker: The One Big Beautiful Bill delivers the largest tax cut for working-and middle-class Americans in history. Put simply President Trump’s One Big Beautiful Bill will unleash our economy and deliver a Blue-Collar Boom.”
When we do a computer search of tax cuts to the wealthy, we find, there use to be rules, or as they say, guardrails governing the passage of these types of tax cuts into law. As Robin Sharma stated, “The real trick in life is to turn hindsight into foresight, that reveals insight.” A little insight, as a result of hindsight, can lead to discovery and change, leading to success, when it comes to the economy, and long-term Job creation. Did you know in 1981, former president Ronald Reagan’s first tax cut to billionaires, millionaires, and corporations was considered a failure, and subsequently withdrawn? AI (artificial intelligence) gives us the factual reasons, why former president Ronald Reagan’s Economic Recovery Tax Act (ERTA) of 1981 was withdrawn. So, let us defer to AI’s analysis of Reagan’s tax cut:
1) The tax cut aimed to stimulate the economy but led to increased budget deficits.
2) Critics argued it disproportionately benefited the wealthy, widening income inequality.
3) Economic growth did not meet expectations, leading to disillusionment among supporters.
4) The tax cut contributed to rising inflation and interest rates during the early 1980s.
5) Political backlash and economic challenges prompted a reevaluation of tax policies.
6) Ultimately, the tax cut was rolled back in favor of a more balanced fiscal measure.
The ERTA was so huge, that it hugely increased the national debt, and blew up budget deficits, it was stated. As a result, with Reagan’s signature of approval, Congress had to undo the tax cut by increasing tax rates from 1982 through 1987 for economic recovery. While, it is difficult to establish the cost of the Reagan tax cut, it was not as large as the $3.4 trillion OBBB, as under Reagan, the U.S. national debt increased to $2.6 trillion. Nevertheless, the Economic Recovery Tax Act of 1981, signed by Reagan, enacted the largest tax cut in U.S. history, at that time.
As you can see, giving huge tax cuts to billionaires, millionaires and corporations did not work 45 years ago, and Trump’s One Big Beautiful Bill is not working, now, when it comes to long-term Job creation. The Bureau of Labor Statistics (BLS) reported November’s most comprehensive unemployment rate, per BLS economists, the U-6 category rate, from the Table of Alternative Labor Underutilization is 8.7%, up from September’s rate of 8.0%, the last reported rate, due to the Federal Government shutdown. The African American rate which is 2.7% higher over the 8.7% rate clocked in at 11.4%.
Factually, the United States economy is not enjoying a full employment economy, as President Donald Trump implies by presenting the official rate of unemployment for November, as 4.6%. Trump stating the nation’s unemployment rate is 4.6%, means 95% of United States’ workers, are fully employed. The estimated size of the U.S. work force is, 170 million people. Investopedia, a highly regarded financial educational web site, which states their experts offer more than 250 years plus of combined experience to ensure they are giving readers the most accurate information, states, “Unemployment of 5% or lower is often considered full employment in a real-world context.”
Investopedia further states, “Full employment is an economic situation, where all workers and laborers who want to work are employed, making it the most efficient employment situation possible.” Fluffed up cable new shows, such as Morning Joe, CNN’s economic segment shows, Fox’s Maria Bartiromo Show and others, including major newspapers, which pass themselves off, as fact-based news sources, help enable and promote the Trump administration’s “false narrative,” stating, we have a full-employment economy, when this is clearly inaccurate. The U-3 category rate at 4.6% for November, was never meant to be promoted as being comprehensive of the United States monthly Job situation. For more detailed information, about unemployment rates, click on this link; https://thyblackman.com/2024/08/18/kamala-harris-economic-policy-the-truth-behind-undercounting-unemployment-rates/.
In spite of Reagan’s failure to push through a tax cut of the magnitude he wanted, in his first term, he was a lot more successful in his 2nd term, with the Reagan Tax Reform Act of 1986, which was more practical. Long-term economic growth doesn’t come from trickle down revenue, due to tax cuts to billionaires, millionaires and corporations, it comes from Consumers Spending money, with disposable income to spend. Consumer Spending or Consumption Spending is 68-70% of U.S. gross domestic product (GDP), per the Bureau of Economic Analysis (BEA). “Increase Consumer Spending responsibly,” and you increase Job creation, while reducing inflation.
Everybody benefits from a solidly growing economy (let’s be precise about that), that doesn’t depend only, on lowering interest rates, (cheap money) to create growth, while watching inflation rise. Per William Penn, “RIGHT is RIGHT, even if everyone is against it, and WRONG is WRONG, even if everyone is for it.” Is it Right, that the GOP give Billionaires a 10-year, $3.4 trillion Tax Cut, which resulted in “not creating the Jobs Trump desired,” and Wrong, for American workers, including working-class Americans to desire a Tax Cut, that will grow the economy, and long-term Job creation? A 10 year, 10 % $25,000 Boomer Consumer Tax Cut is uniquely suitable, to do just that.
We know, the 2017 Trump Tax Cut, and the recent “One Big Beautiful Bill did not produce the Jobs Mr. Trump promised, because we are witnessing with our own eyes a rise in unemployment to 8.7% from September’s rate of 8.0%. But the Covid 19 economic recovery did deliver Jobs by the millions. So, how did that happen? One tax cut delivered millions of Jobs, and the other didn’t. What was missing, when it came to Trump’s Tax Cuts, versus the Covid 19 Tax Cuts?
Both of President Donald Trump tax cuts benefits, accrued to billionaires, millionaires and corporations, similar to Reagan’s withdrawn Economic Recovery Tax Act (ERTA). But the Covid 19 Recovery Tax Cuts were laser focused on generating consumer spending and were largely given to consumers. Consumer Spending drives this economy, as consumer spending money is 70% of GDP (gross domestic product). More consumer spending translates into millions of Jobs, and economic growth.
How do you get more Consumer Spending? You do it, by transitioning to a 10%, 10-year $25,000 Boomer Consumer Spending Tax Cut model economy, “which will, indeed unleash our economy, and deliver the Blue-Collar Boom.” spoken of above, without increasing inflation. The 10% Boomer Tax Cut gives Trump’s Treasury Department the ability to actually “manage the distribution rate of the tax cut,” through direct control of an estimated $800 billion of the tax cut funds, to grow the economy, and Jobs. It is, through pulling forward tax cut payments to Boomers, when needed, as the Fed addresses the issue of inflation and unemployment, that makes the Boomer Tax Cut both unique, and successful. Go to TheFixThisTime.com for more details.
Washington was remembered as our first president, Lincoln for the Civil War, but President Donald J. Trump will inspire the entire world, as a leader, who led the United States to prosperity, and growth through Successfully Fixing the Economy, and Creating Millions of Jobs, While Reducing Inflation in 2026, making our Democracy strong. Yes, Mr. Trump can fix the economy and grow millions of Jobs. He will be remembered, as the President, who unleashed “the economic power, of the First Consumer Driven Model Economy” the world has ever seen.
Staff Writer; James Davis
Mr. Davis is a Financial Analyst. His articles are about relating facts in a usable, truthful, and understandable way. That way, WE ALL WIN. James is, the author of three books, among them, “The Fix This Time,” Boost Your Retirement Income! Simultaneously Create Jobs and Spur Economic Growth (https://www.amazon.com/dp/B00MI3PD2M). Reach out to James @ his blog https://thefixthistime.com.
Question? Comment? One may use this email address; MrDavis@ThyBlackMan.com.
