As reported in this Reuters article, President Donald Trump just signed a sprawling legislative package of tax cuts and federal spending reforms. The legislation, named the "One Big Beautiful Bill Act," passed after weeks of negotiations and razor-thin House and Senate votes. This bill is Trump's first big legislative achievement of his second term. The new legislation makes Trump's 2017 tax cuts permanent, funds his immigration crackdown, and knocks millions of Americans off of health insurance (although Republicans argue they are getting rid of waste, fraud, and abuse).
The One Big Beautiful Bill Act will have significant economic effects over the coming years. Most independent analyses predict small boosts in GDP growth and household incomes, as tax cuts and new deductions temporarily increase consumption and investment. From 2025 to 2027, the U.S. economy could grow between 0.2-0,5 percentage points higher than if the bill had not been enacted, although by 2054, the GDP would be 3 percent smaller than if the bill had not been enacted (source). The short-term growth is driven by higher after-tax income and business incentives for investments. The long-run GDP growth slowdown is mainly due to the higher interest rates that the bill will cause and the crowding out as a result of that. According to the Congressional Budget Office, the Big Beautiful Bill will add approximately $3.4 trillion to the deficit over the next 10 years. Overall, it looks like the One Big Beautiful Bill will deliver short-term economic success, while the long run looks less promising. It is important to note that the Big Beautiful Bill has many smaller features that could make economic impacts, but this article chooses to look at the Bill as a whole and a couple of key features of the Bill.
Earlier this month, the Los Angeles Dodgers won the world series. Shortly after that, Forbes published an article about the record-breaking global viewership that the world series amassed. The 11-inning Game 7 instant classic had over 51 million viewers across just the U.S., Canada, and Japan. There are a couple obvious reasons for the...
This CNBC article, published last week, talks about how the U.S. federal government has just shut down. The shutdown started after Congress failed to reach an agreement on a funding bill before the deadline. The article goes on to talk about the immediate impacts on federal workers, disruptions to non-essential government services, and the...
This CNBC article from earlier today discusses how OpenAI CEO Sam Altman thinks that the artificial intelligence market might be in a bubble. Altman compared today's AI enthusiasm to the dot-com bubble of the late 1990s, where inflated valuations led to a market crash. Altman acknowledged the revolutionary potential AI has, but cautioned that...