There’s a REALLY simple solution to this problem, it’s brilliantly simple… take all the wasteful people from the govn’t that have been robbing Americans of their tax dollars & have them work in the newly available positions of those that will be deported! THERE, problem solved!
Lets take a step back and assess what eliminating government waste will entail.
First, its disruptive. Uncertainty breeds caution. Government projects will not get approved as everyone tries to figure out if it is wasteful or not.
People will either get relocated, or lose their jobs. This is contractionary fiscal policy.
Eventually, all this reduction in government is good for the economy, but it doesn't happen overnight.
There will be a painful adjustment process, which will be deflationary.
So why the hell is the market going bananas thinking this, plus deportation of workers, illegal yes, but still workers, and tariffs are inflationary?
It's not, they are all initially disruptive and contractionary. The Fed will have to cut and do yield curve control on the long end, at least for the next year or two. If not longer.