When Fantasy Meets With Reality

With both houses of Congress, and the president all being in the same political party, the Republicans,  it would seem to be now that the bold moves would take place. Given the Republican bourgeoisie always preaches less government, and less taxes, just now has this unfolded?

Donald Trump and Elon Musk, the richest man in the world, just attempted to gut the state. They removed thousands of state workers and officials, in what was an attempt to pay off the national debt, which stands at 34.2 trillion dollars. It costs about a trillion dollars a year in interest.  This money comes from taxes, through the more mysterious bond borrowing by the Central Bank.  They buy money, to pay off expenses of the state, and the interest is paid for by taxes.

The Central Bank are indebting the state, and the bourgeois speculate on the ability of the state to be able to pay off its debts.

Musk’s effort seemed bold, and he promised to cut 2 trillion dollars from the state.   

But then, things started to unfold that contradicted the Republican message we were so used to hearing about; how fat the state was, and how the assets of the state could be made private property.  Musk started issuing to state offices and state industry ultimatums regarding their employment.  

Musk really believed the Republican bourgeoisie, and attempted to gut the state.   Things started to unravel though, and 2 trillion dollars became 1 trillion dollars.  State workers really were losing their jobs, but it was becoming clear the state employees were there to help  the bourgeois run industry that was needed but could not create a profit.  The state industry could not be sold off to private businessmen,  it turned out the state could not shrink in size much smaller than it already was, without causing civil unrest.

2 trillion went to 1 trillion, and at the end of Musk’s official work to make the state smaller, he saved about 150 billion dollars a year.  This was about a half a percentage point of the expenditures of the state for 2024.  This is about one sixth the size of the interest payments the bonds issued this year are paying.

Then Trump’s efforts at legislation, his budget “big Beautiful Bill” he was trying to pass,  would indebt the state  2.4 trillion to 5 trillion dollars in 5 years.  

So lowering taxes was fiction. 

The massive tariffs also followed Republican leadership, taxes on imports.  It’s simple; the importer buys a foreign product.  When it arrives at the dock,  the importer receives his receipt, with the tax on the purchase displayed on the bottom.  In this case it is the tariff that is the tax, paid for by the importer.  It is like Sales Tax, paid by the purchaser of the product, in this case the importer.  

So much for lowering taxes.  As far as the consumer goes, for instance WalMart has said prices there will be rising due to tariffs.  Trump has said WalMart should make less profit, simply “eating the cost of the tariffs”.  But stores like WalMart, where the proletariat shops, already were stretched to make a profit, having to compete with other stores like online giant Amazon.  Amazon also has said prices are rising, due to tariffs.  

The taxes from Trump on imports, whose Republicans preached about the “tax and spend” culture of Washington constantly to get elected, showed the latter was also fiction.  At best they passed on the taxes to the next generation, by which time the next president will have to pay off the debt, or default.

Moody’s credit ratings are used to assess the creditworthiness of debt issuers, providing investors with insights into the likelihood of default and financial loss.  The repayment of obligations is what is key here,  and on May 16, 2025,  Moody’s Ratings (Moody’s) downgraded the Government of United States of America’s long-term issuer and senior unsecured ratings to Aa1 from Aaa and changed the outlook to stable from negative.

This was the last credit ratings organization to downgrade the government’s credit rating, the others already concluded default by the bourgeoisie on its debts is a risk worthy of a downgrade.

Yet Trump kept suggesting the taxes he created on imports would help pay off the debts.   But it was a drop in the bucket compared to the 32 trillion dollars owed by the government for its debts.

At this point Musk began sensing he had been made on ass of,  and left the government.  He would have a falling out with the president he paid 260 million dollars of his money to elect.  It started getting ugly on social media, with Musk going so far as to suggest Trump should be impeached.

Trump then said Musk had a drug problem, which would explain why he was so easily taken when he heard the state was too fat, and its assets could be privatised. 

I guess the only real question is why there are some who believe the economy has been helped by Trump and his Republicans.  He threatened 150% taxes on Chinese imports. He backed off, but it remains about 50% on imports from China.

Trump is the taxman.  And he is this with complete control of Congress, Senate and House.  Perhaps the only question is is this not exactly what happens when the bourgeoisie has total control the state?

Nicholas Jay Boyes

MIlwaukee Wisconsin

American Democratic Republic

9 17 2025