Trump Economy: Annoyances and Questions

Annoyances

1. When Obama was president, we were repeatedly told that the unemployment rate was a meaningless statistic. Republican commentators often claimed the real measure of unemployment was the labor force participation rate. Yet under a Republican president, discussion of the labor force participation rate by Republican commentators has disappeared. Maybe that is because there has been very little change in the labor force participation rate, so it makes sense to shift the discussion to the unemployment rate. The labor force participation rate began leveling off after 2014, and has not changed significantly since.



2. Commentary about the unemployment rate coming from Republicans is disingenuous at best. The economy has added jobs each month for 86 consecutive months. The current rate of growth is actually slower than it was 3-4 years ago.



3. When Obama was president, Republicans constantly reminded us that a president should not be given credit for a good economy. I agree with this sentiment. The president is only one actor among many that contribute to economic growth, and is only one part of a policy environment that includes Congress, state and local government, and decisions made by private firms. Yet under a Republican president, committment to that sentiment has disappeared. Republicans are fine giving all the credit to Donald Trump for economic success that clearly began prior to the Trump administration.

Questions

1. The unemployment rate is at 4.1%. Now the president is pushing for massive tax cuts. The unemployment rate plus tax cuts would dramatically increase disposable income. Would the result be a significant rise in inflation, thus forcing the Federal Reserve to quickly and dramatically raise interest rates?

2. How will Trump deal with the regionalization of economic growth? We have been watching the consolidation of new business for over 20 years. If the gains of economic growth are not widely distributed, who really beneifits?



3. I have heard Trump recently discuss significant wage growth. Where is the wage growth? Furthermore, the fastest growing jobs are among the lowest paying jobs.



4. If the labor pool is shrinking, which Republicans claim to be the case, who is going to fill all the new jobs Trump would like to create?

Bump for Loose.

Bump for Loose.

Bump for Loose

I'll try to find time to answer these later today, got visitors coming.

Came here to post more on the "tax cuts only help the rich" issue....

I don’t think anyone here has said “only” goose.

Honestly, sometimes it feels like some of you just woke up and started paying attention to politics a year ago.

A political party is attempting to shift the talking to points to what makes their side look good? No. Way.

Tax cuts drive business back to the Motor City

Fiat Chrysler will make Ram trucks in Michigan instead of Mexico beginning in 2020, and the company says this will mean 2,500 extra jobs at the plant in Warren, Detroit’s largest suburb.

While this isn’t the first bit of good economic news in the wake of big corporate tax cuts Republicans just passed, it’s the one that cheers us the most, because it best reflects the way lower corporate taxes work.

The key is not bigger profits but increased competitiveness.

More companies will set up more business in the U.S., because it’s now easier to compete by doing so.

Mexico has a 30 percent corporate rate. When the U.S. had a 35 percent rate, it made sense for Chrysler to make its profits in Mexico. Now the U.S. rate is 21 percent. Labor is still much cheaper in Mexico, but Chrysler weighs the pros and cons of where to manufacture, and the U.S. is suddenly much more appealing than it had been before the bill passed.

Lower tax rates aren't the only reason to move a plant to Michigan. Better energy infrastructure, a more educated workforce, and a better legal system all weigh on that side of the scale. But reducing the tax rate from 35 percent to 21 percent weighs heavily, and in many cases, it will tip the balance in favor of America.

What the mainstream media and, certainly, the racist, bigoted sexual predator won't tell you is that the economy is slowing under the racist, bigoted sexual predator.

Shocking, I know.

LooseGoose wrote:Tax cuts drive business back to the Motor City

Fiat Chrysler will make Ram trucks in Michigan instead of Mexico beginning in 2020, and the company says this will mean 2,500 extra jobs at the plant in Warren, Detroit’s largest suburb.

While this isn’t the first bit of good economic news in the wake of big corporate tax cuts Republicans just passed, it’s the one that cheers us the most, because it best reflects the way lower corporate taxes work.

The key is not bigger profits but increased competitiveness.

More companies will set up more business in the U.S., because it’s now easier to compete by doing so.

Mexico has a 30 percent corporate rate. When the U.S. had a 35 percent rate, it made sense for Chrysler to make its profits in Mexico. Now the U.S. rate is 21 percent. Labor is still much cheaper in Mexico, but Chrysler weighs the pros and cons of where to manufacture, and the U.S. is suddenly much more appealing than it had been before the bill passed.

Lower tax rates aren't the only reason to move a plant to Michigan. Better energy infrastructure, a more educated workforce, and a better legal system all weigh on that side of the scale. But reducing the tax rate from 35 percent to 21 percent weighs heavily, and in many cases, it will tip the balance in favor of America.

thanks for the mainstream media link telling us how great the racist, bigoted sexual predator is.

It seems those radical right wingers at Apple like the new tax laws.

Apple announces plans to repatriate billions in overseas cash, says it will contribute $350 billion to the US economy over the next 5 years

Apple says the new tax law will help it will contribute $350 billion to the U.S. economy over the next five years.

It says it will create 20,000 new jobs and open a new campus.

Apple expects to pay about $38 billion in taxes for the horde of cash it plans to bring back to the United States.

Apple will invest $350 billion in the US economy over the next 5 years Apple will invest $350 billion in the US economy over the next 5 years

Apple on Wednesday made a slew of announcements about its investment in and contribution to the U.S. economy in part because of the new tax law.

The headline from Apple is that it will make a $350 billion "contribution" to the U.S. economy over the next five years, although it's unclear exactly how the company came to that number.

The company also promised to create 20,000 new jobs and open a new campus.

It said it expects to pay about $38 billion in taxes for the horde of cash it plans to bring back to the United States. This implies it will repatriate virtually all of its $250 billion in overseas cash.

Apple also said it will spend over $30 billion in capital expenditures over the next five years. About $10 billion in capital expenditures will be investments in U.S. data centers, the company said.

Apple added that it will spend $5 billion as part of an innovation fund, up from the $1 billion CEO Tim Cook announced last year on CNBC's "Mad Money."

LooseGoose wrote:It seems those radical right wingers at Apple like the new tax laws.

Apple announces plans to repatriate billions in overseas cash, says it will contribute $350 billion to the US economy over the next 5 years

Apple says the new tax law will help it will contribute $350 billion to the U.S. economy over the next five years.

It says it will create 20,000 new jobs and open a new campus.

Apple expects to pay about $38 billion in taxes for the horde of cash it plans to bring back to the United States.

Apple will invest $350 billion in the US economy over the next 5 years Apple will invest $350 billion in the US economy over the next 5 years

Apple on Wednesday made a slew of announcements about its investment in and contribution to the U.S. economy in part because of the new tax law.

The headline from Apple is that it will make a $350 billion "contribution" to the U.S. economy over the next five years, although it's unclear exactly how the company came to that number.

The company also promised to create 20,000 new jobs and open a new campus.

It said it expects to pay about $38 billion in taxes for the horde of cash it plans to bring back to the United States. This implies it will repatriate virtually all of its $250 billion in overseas cash.

Apple also said it will spend over $30 billion in capital expenditures over the next five years. About $10 billion in capital expenditures will be investments in U.S. data centers, the company said.

Apple added that it will spend $5 billion as part of an innovation fund, up from the $1 billion CEO Tim Cook announced last year on CNBC's "Mad Money."

if only Goose and the mainstream media actually approved of the racist, bigoted sexual predator and wanted him to win.

[lolz]

I'm glad the repatriation tax break is bringing money back to the US but I wish they would close the fucking loopholes that make it possible to hoard money overseas at low tax rates to begin with.

https://www.cnbc.com/2018/01/17/few-large-companies-say-theyll-use-tax-savings-to-boost-wages-cnbc-survey-finds.html

I'm glad that Apple is doing what it is doing. I do think the tax bill has some merit. But according to this article, most of the largest companies aren't changing what they're going to do or haven't decided yet. And the effects on smaller incorporations won't be known for quite a while.

When the Dems take over Congress this year, I wonder what their first piece of legislation is going to be? Repeal the tax cut?

Is it "pro Trump" to be happy that the government is running a surplus? It's almost as if I need to root against America to be anything but "Pro Trump"

Amazing - This sounds like just what the supply siders said would happen.

Go Figure: Tax Revenues Climbed $18 Billion In First Month Of GOP Tax Cuts

Fiscal Policy: The Congressional Budget Office says that federal revenues in January added up to $362 billion. That's an increase of $18 billion— or 5.2% — from the year before. As a result, the government ran a surplus of $51 billion that month, which is equal to the previous January.

Wait, weren't the tax cuts supposed to bankrupt the country to benefit the rich? It almost looks like the tax cuts — which took effect in January — are paying for themselves.

LooseGoose wrote:Is it "pro Trump" to be happy that the government is running a surplus?   It's almost as if I need to root against America to be anything but "Pro Trump"

Amazing  -  This sounds like just what the supply siders said would happen.

Go Figure: Tax Revenues Climbed $18 Billion In First Month Of GOP Tax Cuts

Fiscal Policy: The Congressional Budget Office says that federal revenues in January added up to $362 billion. That's an increase of $18 billion— or 5.2% — from the year before. As a result, the government ran a surplus of $51 billion that month, which is equal to the previous January.

Wait, weren't the tax cuts supposed to bankrupt the country to benefit the rich? It almost looks like the tax cuts — which took effect in January — are paying for themselves.

Being Pro-Trump is more about an individual being really really dumb Goose. You can be happy about the economy and still realize that this country went full moran in electing President Twitterfingers.

You’d think that the “equal to the previous January” part that he even quoted would have tipped him off that a surplus on a monthly basis is not exactly an uncommon occurrence but, you know, whatever.

LooseGoose wrote:Is it "pro Trump" to be happy that the government is running a surplus? It's almost as if I need to root against America to be anything but "Pro Trump"

Amazing - This sounds like just what the supply siders said would happen.

Go Figure: Tax Revenues Climbed $18 Billion In First Month Of GOP Tax Cuts

Fiscal Policy: The Congressional Budget Office says that federal revenues in January added up to $362 billion. That's an increase of $18 billion— or 5.2% — from the year before. As a result, the government ran a surplus of $51 billion that month, which is equal to the previous January.

Wait, weren't the tax cuts supposed to bankrupt the country to benefit the rich? It almost looks like the tax cuts — which took effect in January — are paying for themselves.

only if you trust the mainstream media.

Higher wages & parental leave for these 240,000 Americans. I'm sure they feel like "full morons" for being happy.

CVS to hike wages, introduce paid parental leave with windfall from new tax law

CVS Health will increase employee pay and sweeten benefits to some employees using a portion of the company's windfall from the new tax law.

CVS will boost starting pay for hourly employees to $11 per hour from $9 per hour, starting in April. Pay ranges and rates will be adjusted for many of its retail pharmacy technicians, front store associates and other hourly retail employees later in the year. Full-time employees will qualify for as much as four weeks of paid parental leave, and worker health-care premiums will hold steady at current rates.

The health-care company has more than 240,000 employees.

Retailers have started hiking their minimum wages to remain competitive in a tightening labor market. Numerous big names have announced raises and added benefits since President Donald Trump signed the Tax Cuts and Jobs Act in December.

LooseGoose wrote:Higher wages & parental leave for these 240,000 Americans. I'm sure they feel like "full morons" for being happy.

CVS to hike wages, introduce paid parental leave with windfall from new tax law

CVS Health will increase employee pay and sweeten benefits to some employees using a portion of the company's windfall from the new tax law.

CVS will boost starting pay for hourly employees to $11 per hour from $9 per hour, starting in April. Pay ranges and rates will be adjusted for many of its retail pharmacy technicians, front store associates and other hourly retail employees later in the year. Full-time employees will qualify for as much as four weeks of paid parental leave, and worker health-care premiums will hold steady at current rates.

The health-care company has more than 240,000 employees.

Retailers have started hiking their minimum wages to remain competitive in a tightening labor market. Numerous big names have announced raises and added benefits since President Donald Trump signed the Tax Cuts and Jobs Act in December.

thanks for the mainstream media link telling us how great the sexual predator is.

The Trump-GOP tax law enacted in December 2017 creates clear incentives for American-based corporations to move operations and jobs abroad, including a zero percent tax rate on many profits generated offshore. Now the Trump administration and some lawmakers who supported the 2017 law say they are concerned about companies moving jobs offshore, particularly to China, and call for additional tax breaks to lure them back.

New tax cuts to incentivize bringing jobs back to the United States will fail. No new tax provisions can be more generous than the zero percent rate the 2017 law provides for many offshore profits or the loopholes that allow corporations to shift profits to countries with minimal or no corporate income taxes.

https://itep.org/trump-gop-tax-law-encourages-companies-to-move-jobs-offshore-and-new-tax-cuts-wont-change-that/

Trapper Gus wrote:

The Trump-GOP tax law enacted in December 2017 creates clear incentives for American-based corporations to move operations and jobs abroad, including a zero percent tax rate on many profits generated offshore. Now the Trump administration and some lawmakers who supported the 2017 law say they are concerned about companies moving jobs offshore, particularly to China, and call for additional tax breaks to lure them back.

New tax cuts to incentivize bringing jobs back to the United States will fail. No new tax provisions can be more generous than the zero percent rate the 2017 law provides for many offshore profits or the loopholes that allow corporations to shift profits to countries with minimal or no corporate income taxes.

https://itep.org/trump-gop-tax-law-encourages-companies-to-move-jobs-offshore-and-new-tax-cuts-wont-change-that/

shit like this is why we have the debt we do.