Trump Trickles Down

   Watch for an economic policy speech coming soon from Donald Trump, in which he will outline his plans to boost the economy, specifically through tax cuts and deregulation.
   We can expect more warnings from the Republican candidate for President that the economy is wallowing dangerously, and that only he can fix it.
   Meanwhile, the Labor Department reported a boost of 255,000 jobs added to nonfarm payrolls last month, as the unemployment rate held steady at 4.9 percent.
   Earlier, the Bureau of Economic Analysis said personal income and spending for Americans both rose in June.That may be statistically true for the nation as a whole, but there are still many who are still struggling. Another good sign for the economy is that Gross Domestic Product (GDP) increased in the second quarter of this year by 1.2 percent.
   The national economy, the total value of all goods and services produced in America, is now about $18 trillion, and the recovery from the Great Recession is now in its seventh year.
   Also this week, the Census Bureau reported an increase in the nation's international trade deficit to $44.5 billion in June, from $41 billion in May, as imports increased more than exports. Exports totaled $183.2 billion, and imports totaled $227.7 billion.
   Why is there a trade deficit? Here's a simple answer: Americans buy more stuff than they sell. One reason for that is because America doesn't make as much stuff as it used to, but household income is higher in America than in other countries as American workers move to higher technology, higher education and higher skill levels than ever.
   Even so, there is a widening income gap in America as the one percent of households have more wealth and the middle and lower income groups have less, partly because whatever pay boosts they have had were eaten up by inflation.
   So in a few days, the Republican candidate will detail his plans to kickstart the economy through tax cuts and deregulation, typical strategies proposed by adherents of trickle-down economics. This plan says that tax cuts for the wealthiest encourage them to spend more, and the benefits of increased spending then trickle down to everyone else.
   Eventually.