After reading the Weekly Economic Commentary from Raymond James, written by Chief Economist Eugenio J. Alemán, I couldn’t help but feel a mix of frustration and urgency. The article dives into the growing fiscal and trade deficits in the U.S., and while it offers some solid solutions, it also reveals just how stuck we are as a country when it comes to making tough economic decisions. As I read through Alemán’s analysis, I found myself asking: Are we really doing enough to secure our economic future, or are we just kicking the can down the road?
Alemán makes a strong case for why the fiscal deficit is at the heart of America’s economic problems. He points out that government spending is out of control, tax revenues aren’t keeping up, and neither political party seems willing to take responsibility. His solution? A balanced approach: cut spending and increase taxes modestly, just by 1% of GDP. It sounds simple enough, but as he explains, political gridlock makes even this modest proposal seem impossible.
He also takes aim at tariffs, those taxes on imported goods that politicians love to use as a quick fix for economic problems. According to Alemán, tariffs don’t help reduce fiscal deficits. Instead, they act as a hidden tax on American consumers, especially lower-income families. That hit home for me because it shows how policies like these end up hurting the people they’re supposed to protect.
One thing that stood out to me in Alemán’s commentary was his blunt criticism of both Republicans and Democrats. He doesn’t hold back, calling out Republicans for promising spending cuts they never deliver and Democrats for pushing tax hikes without fixing deeper issues in how money is spent. It’s clear that both sides are more interested in scoring political points than solving real problems.
What really frustrated me was when Alemán talked about how Republican tax cuts could add $9 trillion to the national debt over the next decade. That number is staggering. It feels like politicians are playing with fire and expecting future generations to deal with the fallout.
I’ve always heard mixed opinions about tariffs, but Alemán’s breakdown made it crystal clear why they’re such a bad idea. He explains that tariffs don’t actually fix trade deficits or fiscal problems, they just make goods more expensive for Americans. Lower-income families end up paying more for everyday items like clothes or electronics, while businesses struggle with disrupted supply chains.
What’s worse is that recent tariff hikes, like the shocking 145% tariff on Chinese imports, are setting us back even further. Alemán calls this move “protectionist,” and honestly, it feels like we’re shooting ourselves in the foot economically.
I was surprised to learn that inflation has been improving recently, with prices even dropping slightly last month. For a moment, it seemed like we were finally turning a corner economically. But then Alemán warns that poor policy decisions, like escalating trade tensions, could undo all that progress. It feels like we’re sabotaging ourselves just when things are starting to look better.
By the end of the article, I felt like Alemán was practically begging policymakers to step up and do something meaningful. He suggests raising taxes slightly, cutting unnecessary spending, and even creating a temporary plan to pay down pandemic-era debt. These ideas make sense to me. they’re not extreme or unrealistic, but he admits they’re unlikely to happen in today’s divided political climate.
That’s what worries me most, the disconnect between what needs to happen and what actually gets done in Washington. Alemán’s frustration is obvious throughout his commentary, and I share it. How can we move forward when our leaders won’t put aside their differences for the greater good?
Reading this commentary felt like a wake-up call. America is at a crossroads right now, and unless we make some tough decisions soon, we could be heading toward long-term economic stagnation, or worse. Alemán doesn’t sugarcoat anything, he lays out exactly what needs to change and why it’s so hard to make those changes happen.
As someone whose children will inherit this economy someday, I feel frustrated but also hopeful that we can do better. We need leaders who are willing to rise above partisan politics and focus on what really matters, securing our future. If we don’t act now, we might look back at this moment as a huge missed opportunity, and I don’t want my progeny's generation to pay the price for that failure.
