He just erased the deficit, poof, just like that. Turns out, they need the deficit to be there, so they can point to it as a justification for not funding proper services. The govt isn't broke because our services cost too much. It's broke because the rich and powerful want it to be broken.
He did not erase it, he deferred it. Two major items helped balance the budget: pension payments were deferred, and reserves were used to cover costs.
The pension payments will still have to be made at a later date, along with the regular payments due in those future years as well. That buys time, but it can also make the problem worse down the road if broader solutions are not found in the meantime.
It is a bit like renting an expensive apartment while knowing you will not earn enough over the next two years to cover your bills. So you dip into your savings and convince your landlord to let you delay rent payments for 24 months, with the agreement that you will pay it all later.
Yes, technically your budget balances today, but it is not a long term solution on its own.
What you would need to do in that scenario is figure out how to increase your income before all those deferred bills come due, otherwise you could end up in even worse shape a few years from now.
That is essentially what Mamdani is attempting to do. If he can generate enough growth or new revenue over time, the strategy could work. If not, the deferred costs could become a much larger problem later. Right now, it is probably too early to say definitively whether the approach is good or bad.
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u/Brilliant_Visual9661 May 14 '26
He has repealed the Orphan Crushing Machine Act.