Gerstner notes government is spending $42 billion on rural broadband despite Starlink already providing perfect coverage.
“So anyway, they decided they were going to spend 42,000,000,000 on rural broadband. And between ten years ago and now, Starlink's been built.”
Gerstner argues balancing the budget by 2029 requires reducing government spending 3% annually from $7T to $6T.
“Now you get there by simply reducing the size of government by about 3% a year for the next four years. Again, just still going from 5,000,000,000,000 in 2019 to 6,000,000,000,000 in 2029.”
Gerstner calculates proposed tariffs would 10x revenue to $500B while Doge cuts $1T spending, totaling $1.5T austerity.
“If you look at tariffs, they're likely to impose, we currently generate about $50,000,000,000 in tariff revenue. The president is targeting 500,000,000,000, so a 10x increase in tariff revenue.”
Gerstner cites United Airlines government ticket sales down 50% year-to-date as indicator of spending cuts' cascade effects.
“I heard a stat the other day that United Airlines ticket sales to the government this year are down 50% year to date, five zero.”
Gerstner calculates cutting $2 trillion in one year would create 800 basis point GDP headwind.
“You can't just cut 2,000,000,000,000 in a single year. That would be an 800 basis point headwind to GDP.”