Name: Will Trump’s Big Beautiful Bill Lead to Economic BOOM or Disaster?
Uploaded: 2025-07-22T18:42:24.000Z
Duration: 14 min 35 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

There is a lot of debate on the internet about the big beautiful bill.

On one side, people claim that it is going to lead to economic prosperity.

On the other side, some experts are warning that it will lead to a financial disaster.

What we know for a fact is that it is going to be the largest tax cut in the history of America since Ronald Reagan.

Now it doesn't matter what you think about this bill now.

Whether you support it or hate it, it was passed by the senate and signed by the president.

Which means that everybody is going to be impacted.

So here in this video, let's try to figure out whether it is going to lead to an economic boom or it will turn into a financial disaster and how you can profit out of it.

If you are ready, give this video a thumbs up and let's get right into it.

The big beautiful bill contains a lot of things within itself.

But one of the most important things is that it will make 2017 Trump's tax cuts permanent.

They supposed to expire this year but from now onwards, America is going to be on a trajectory of low taxes, both for individuals and corporations.

It is also going to raise the salt from 10 thousand dollars to 20 thousand dollars.

That will allow people who are making a lot of money to further lower down their taxable income, which means lower taxes.

It's also going to lower down the long-term capital gain taxes from 20% to 15%.

There were already multiple ways where you could lower down your capital gain tax, but now you know for a fact that you are not going to pay 20%.

If you are selling off your stocks, you will pay much lower taxes.

This is probably one of the lowest taxes that you could possibly pay on an investment.

And that's why rich people primarily make their money from stocks and investments.

If you are a billionaire or if you are even a millionaire with millions of dollars in stocks and you are selling your stocks, you will pay a lower tax rate.

On the other side, it is going to cut 900 billion dollars from medicaid.

This is one of the most important government programs.

And they will make it much more stricter, much more difficult for people to be eligible for medicaid, which means cutting government programs.

But besides that, they will also get rid of the clean energy subsidies that's worth around 515 billion dollars.

Back when Biden was president, he passed the inflation reduction act to be able to compete with China.

To set the US clean energy on a trajectory to compete with China, since China dominates the battery market, the clean energy market, and EV market.

With these subsidies, it's supposed to catapult Tesla and other EV car companies and battery manufacturers to finally be able to compete with them.

On top of that, it's supposed to eliminate multiple government agencies that's supposed to save the government around 800 billion dollars.

For example, food stamps will be reduced by 180 billion dollars.

The department of education is entirely eliminated that also costs the government billions of dollars annually.

On top of that, eliminate almost all foreign aid to other countries.

But the biggest claim out of this big beautiful bill is that it's supposed to grow the GDP by 4.6% to 4.9% within the next 4 years.

And then it will slow down to around 2.8% after that until 2034.

If these objectives are going to be met, the United States debt to GDP ratio will fall in the best-case scenario to 94%.

That's if you do not include intra-governmental debt.

The government debt that one government agency owes to another.

Because if you also include intra-governmental debt, then we are talking about 120%.

And with the current rate, they supposed to grow not to 117% but up to 135% within the next 10 years.

But this is a very bold claim that with this bill, it will be lowered down to 94%.

And this is by the way the charts from the white house page.

The next biggest claim is that they will lower down the primary deficit and will turn it into a positive, which is a big claim.

The primary deficit is the entire deficit if you exclude the interest payments.

Because interest payments play a big role.

And interest payments also depends on multiple factors such as the rates that are set by the fed.

We can't predict the rates that the fed will set in the next couple of months.

Leave alone predicting them in the next 5 to 7 years.

If interest rates will be low, then interest payments will be low.

If interest rates will be risen to 5 or 6% like they are right now, then the interest payments will take a bigger chunk of the government's revenue.

Nonetheless, the next biggest claim that they have made is that under the big beautiful bill, the total deficit compared to the GDP will go down from around 6% to as low as 3.2%.

It's not the ideal target because you want to bring it down to lower than 3%, but it's far better than 6.3% that we have right now.

But if we are going to be honest about it, then according to multiple experts, this year it is going to be more than 7%.

Since it is going to cut a lot of government's revenue, which will force the government to borrow far more money, which is going to grow the deficit.

This is exactly what the United States needs.

Finally, the debt problem will be achieved.

And that's because it was created by the council of economic advisory, which is an agency within the white house.

And they work directly with the president of the United States.

So they came up with the most optimistic numbers possible.

Growing the GDP by almost 5% annually is unrealistic.

We can't even figure out whether China will grow by 5%, which is 5 times much poorer than the United States.

Leave alone for the US to grow that much.

The US economy is a very matured economy.

It has reached the levels that it's very difficult for it to grow by more than 2.5%.

So it doesn't matter how much you cut taxes.

Expecting it to grow by 5% is only possible in theory.

The most realistic scenario is for it to grow by around 2%.

In fact, without the big beautiful bill, it's supposed to grow by less than 2%.

Let's assume that you pass the big beautiful bill and it's going to encourage much more spending, and the GDP will grow by more than 2%.

You can expect 2.2%, 2.3%, in the best-case scenario, maybe 2.5%.

But 5% in a single year is insane, and 4 more straight years is extremely unimaginable for most people.

Let's take an example of 2017 when first Trump's tax cuts went to an effect.

The GDP did actually grow faster by around 3%.

And the circumstances of the economy back in the days was completely different from today.

Back in the days, we had very low interest rates, we had very low inflation for multiple years and the deficit to GDP ratio was around 3%.

Today we have a completely different reality.

Deficit is more than 6%, inflation just cooled down to around 2.3% and interest rates are almost 5%.

So expecting today anything around 3% to 5% is impossible, especially when we talk about 4 straight years.

Here is the most realistic scenario that is going to happen.

All we have to do is look back at the history and find out what exactly has happened when we cut taxes by a lot.

The biggest tax cut in the history of America was probably by Ronald Reagan back in 1981.

He becomes the president, he comes from the private sector and realizes that the United States' individual taxes are as high as 90% for the highest earners.

Who is going to work hard to make more money?

So he brought them down from as high as 90% to as low as 28% and he also lowered down the income tax as well for every single individual and for corporations as well.

It instantly resulted in a much higher deficit to GDP ratio of about 5.7%.

Now the interesting thing about this chart is that in 1986, at this particular point, you see a very different trend, where the deficit began to shrunk.

And that's because when the government realized that on one side we are still spending the exact same amount of money, we still have a huge military, we still have the exact same government programs, we still have all of those spendings.

On the other side, we cut taxes which dry up our budget.

Especially during those days, the interest rates were extremely high.

So the congress was forced to pass the Graham-Rudman act.

That if the congress will not agree to balance the budget, there will be automatic cuts on discretionary spending.