Mr. Trump, What About That Economy?

2020 will be a mandate on how the economy is doing and how the American people are doing economically.

You would think that if the economy is as good as Trump use to brag about then he would be beating his chest about how damn good it is and that his policies were the fire that started this good burn.

In case you are new and have not been keeping up I have a little reminder of how this economy is really doing…..not the bluster of bullsh*t from some deluded toad and his lackeys….but real facts.

Let me help…….https://lobotero.com/2019/08/15/the-economy-stupid/

What bout all those beautiful jobs and factory re-openings and good times had by all?

It seems the the manufacturing sector is having a bit of a slide……

A gauge of U.S. manufacturing showed the lowest reading in more than 10 years in September as exports dived amid the escalated trade war.

The U.S. manufacturing purchasing managers’ index from the Institute for Supply Management came in at 47.8% in September, the lowest since June 2009, marking the second consecutive month of contraction. Any figure below 50% signals a contraction.

The new export orders index was only 41%, the lowest level since March 2009, down from the August reading of 43.3%, ISM data showed.

https://www.cnbc.com/2019/10/01/us-manufacturing-economy-contracts-to-worst-level-in-a-decade.html

How about all those steel mills that would be re-opening?  That was another economic promise. 

It seems that this sector is not as stable thanx to Trump….

Louisiana is the latest state to see a steel mill close due to President Donald Trump’s tariffs.

“Hundreds of Louisiana steelworkers are finding out they no longer have a job. This comes as Bayou Steel “unexpectedly” shut down its mill in LaPlace on Monday.

Now, 376 people are looking for new work.

Bayou Steel transports and makes steel beams and other similar products. They also collect industrial scrap for recycling. Company officials say the mill will be permanently closed on November 30, and sent out a WARN letter to parish and state officials Monday. That letter cited ‘…unforeseen business circumstances and the inability to secure necessary capital’ for the closure….

Steel Mill In State That Voted For Trump Closes Suddenly, Leaving Hundreds Jobless

Trump’s economic adviser stated that “Manufacturing is strong as a rock”….maybe they misspoke and meant that it is sinking like a rock.

Then there is all the talk about how well the sanctions Trump has imposed is doing for the country…..really?

The Trump administration has made sanctions a key part of its foreign policy arsenal, placing enormous economic pressure on nations like North Korea and Iran in a bid to force concessions in negotiations with the United States. But is there real evidence that this tactic works?

The U.S. government, it turns out, can’t be sure. A new report released by a government watchdog this week found that although the agencies that implement sanctions track their economic impact, they do not measure whether the sanctions achieve their aim in forcing a target to change its behavior.

https://outline.com/V5rVXb

Finally, what about the federal deficit under the Trump presidency?  Well thanks for the Trump tax cuts the deficit is approaching $1 trillion…that is trillion with a “T”…….

The federal budget deficit for 2019 is estimated at $984 billion, a hefty 4.7 percent of gross domestic product (GDP) and the highest since 2012, the Congressional Budget Office (CBO) said on Monday.

The difference between federal spending and revenue has only ever exceeded $1 trillion four times, in the period immediately following the global financial crisis.

The deficit, which has grown every year since 2015, is $205 billion higher than it was in 2018, a jump of 26 percent.

The CBO has warned that the nation’s debt is on an unsustainable path. Higher levels of debt increase borrowing costs, make it harder for the government to battle economic downturns and increase the share of future spending devoted to paying off interest costs.

https://thehill.com/policy/finance/464764-federal-deficit-estimated-at-984b-highest-in-seven-years#.XZvfoTG5TFN.twitter

If the 20320 election will truly be about the economy…then should not this stuff be making the news?

Just asking but I already know why….do you?

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“I Read, I Wrote and now You Know”

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Trump’s Trade War

There are a wealth of effects of the trade war that dear leader has set his policies on…..like higher prices and Christmas on the way…..but the one number that Americans will pay attention to is the jobs numbers…..

A job count is depressing……….

President Trump says he is “winning big time, against China.” But his trade war is causing measurable damage to the U.S. economy, with the pain likely to worsen.

Forecasting firm Moody’s Analytics estimates that Trump’s trade war with China has already reduced U.S. employment by 300,000 jobs, compared with likely employment levels absent the trade war. That’s a combination of jobs eliminated by firms struggling with tariffs and other elements of the trade war, and jobs that would have been created but haven’t because of reduced economic activity.

The firm’s chief economist, Mark Zandi, told Yahoo Finance that the job toll from the trade war will hit about 450,000 by the end of the year, if there’s no change in policy. By the end of 2020, the trade war will have killed 900,000 jobs, on its current course. The hardest-hit sectors are manufacturing, warehousing, distribution and retail.

Other data back up the Moody’s Analytics numbers. Employers have created 1.3 million jobs so far this year, down from 1.9 million during the same period in 2018. The manufacturing sector has actually contracted, with many producers struggling with higher prices caused by Trump’s tariffs. Business investment is growing by the smallest amount since late 2016.

https://finance.yahoo.com/news/trumps-trade-war-has-killed-300000-jobs-194717808.html

Since this trade war will be a drag on Trump’s re-election hde had to come up with something to change the conversation……and he possibly has found his answer…..the problem is it will a deficit buster…..

President Donald Trump promised to unveil an “inspirational” middle class tax cut next year during a political retreat in Maryland late Thursday, just as the Treasury Department said the nation’s budget deficit topped the $1 trillion mark for only the second time on record. 

Trump told House Republicans in the state’s biggest city, Baltimore, that his “substantial” tax cut plans would be “very, very inspirational … for  middle-income folks, who work so hard,” and that details would be released early next year. Congress, however, would need to approve and pass any suggested tax reductions from the executive branch, setting up a potential election-defining fight with Democratic lawmakers heading into next year’s presidential elections.

The pledge will also add further pressure on the nation’s finances after the Treasury reported a $169 billion shortfall in revenues in August, taking the overall deficit for the 11 months ended in August, the government’s fiscal year, to $1.07 trillion. The last trillion-plus deficit was recorded in the three years that followed the 2008 global financial crisis. 

(thestreet.com)

Where are the deficit hawks?  The Fiscal Conservatives are a bunch of low life cowards.

This is just a promise like all his promise hollow and without merit.

It’s The Economy

I have been saying that out leader Trump should STU about everything but the economy for he could claim all success there but instead he chooses to go about running that tireless uninformed mouth to everyone’s chagrin.

Well that may not be an option now……seems the economy is slowing down according to some of the latest reports……Trump may well have missed the best opportunity to hawk his economic prowess….

This week, much of the story that the White House likes to tell about its economic record fell apart.

It’s not just that growth appears to have slowed, though it has. On Friday, the Commerce Department reported that the country’s gross domestic product expanded at a middling 2.1 percent annual rate during the the second quarter, down from 3.1 percent over the first three months of 2019. This was only a preliminary estimate, a guesstimate really; the government will gather more data and revise that number in the coming months. But it was clearly worrisome to Donald Trump, who tried in vain to put a glass-half-full spin on the news while also placing blame for any weakness on his nemeses at the Federal Reserve.

https://slate.com/business/2019/07/trump-gdp-report-economy.html

But not to worry Trump supporters he will do what he ALWAYS does….make stuff up and lie his ass off.

But for a closer look at the economy……

Economists noted that business capital investment, which has been strong for the past two years, fell at a 0.6% annual rate in the April-June quarter, the first decline in three years. That weakness likely reflects, at least in part, a reluctance by businesses to commit to new projects because of uncertainty surrounding President Trump’s trade war with China. Indeed, most analysts think the US economy could slow through the rest of the year, reflecting both global economic weakness and the trade war between the world’s two largest economies. That is one key reason why the Federal Reserve is widely expected to cut interest rates next week and to signal that it may further ease credit in the months ahead.

It may be too late for the president to use the economy as a political prop….you snooze you lose……

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Job Numbers Are Worrying

Could all this “booming” economy be worrying news?

The job market is one that has “real” economists worried….that one in the White House only played an economist on TV…nothing about him is expert.

AXIOS has done some research that needs reporting more….

The U.S. jobs market, having long been the bedrock of the nation’s economic expansion, is starting to worry economists ahead of next week’s payroll data.

What’s happening: After years of remarkably smooth sailing, 2019 has brought market volatility and some concern about whether the economy can keep adding jobs at a fast enough pace to sustain the expansion.

What we’re hearing: Job gains don’t necessarily have to turn negative to signal trouble, Mark Zandi, chief economist at Moody’s Analytics, told Axios at a labor market conference hosted by payroll processor ADP this week.

All that’s required is a strong slowdown in job growth. A 0.5% increase from a cyclical low on the unemployment rate has accurately predicted every recession in recent history and has never been a false positive, as Brookings economist Claudia Sahm noted recently.

  • “Once unemployment starts to rise, even from a very low level, it undermines confidence, and the only difference between an expanding economy and a recessionary one is faith,” Zandi said.
  • “A recession is a collective loss of faith, and people lose faith when they start seeing unemployment rise.”

Why now? A slowdown is not that unlikely, given the state of the labor market. The unemployment rate is at a 50-year low — it was 3.6% in May — and employers are reporting more trouble finding people to hire.

  • In a poll of small business owners conducted in May, 25% said that finding qualified workers was their No. 1 problem, according to the National Federation of Independent Business.
  • The trade war also is adding stress to the economy, but so far the effects have been concentrated in the trade and export sectors, which make up a small piece of overall employment.

What to watch: The all-important services side of the economy has been strong, but is beginning to feel the impact of the tight labor market, said Ahu Yildirmaz, co-head of ADP Research Institute. The number of job openings exceeded the number of unemployed Americans by the largest margin on record in April.

  • “Let’s remember you need approximately 100,000 net new jobs to keep the economy moving. We’re still above that level, however there are so many other factors,” she said.
  • “If you look at the last couple months, the jobs numbers were really, really volatile.”

The bottom line: Another blowout print like January’s, which showed 312,000 jobs added, will calm a lot of jitters.

Keep in mind that there is more to an economy than just the markets……but the MSM wants every American to believe all is good as long as the profits are being made by corporations…..not necessarily so.

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Labor Economics

MY friend and regular reader of IST Carl of “I Know I made You Smile”……https://carldagostino.wordpress.com/……ask a good question in one of his comments after reading one of my posts.

He had a problem with a statement made in post from last week…..”“Labor shortages are impeding job growth”….the statement is from this post…..https://lobotero.com/2019/06/07/closing-thought-07jun19/

His question fired me up to do what I truly enjoying doing…research…..so as promised here is the best answer that I could come up with since I am not an economist by trade it may get a bit techy…..

A common bit of confusion is between jobs and labor…..first what causes a labor shortage?

A labour shortage can be caused by a turn in economic conditions where there is a shortage of skilled workers for a given industry or overall job market. … Shortages can also be caused by a mismatch in skills, poor compensation, geographic location or ineffective recruitment by employers

Now the difference between Labor force and workers…..Employees are considered part of the labor force, but the terms “employees” and “labor force” don’t mean precisely the same thing. Not everyone in the labor force would fit the exact definition of an employee, since the labor force includes a much broader category of people. The labor force is a blanket term describing an entire collection of people either employed or seeking employment.

Is that confusing enough?

Maybe this short video will help…..

After writing this I realized that this may not answer the question Carl asked….I apologize if I made it more confusing.

Another reason I do not like economics…..too damn confusing and none of the “laws” seem to work without some sort of adjusting.

Closing Thought–07Jun19

We hear a lot by the conservs telling America about the “booming econ0omy” and the return of jobs under Trump…..

But the figures from last month are not showing that rosy or that optimistic….

Job creation skidded to a near-halt in May in another sign that the U.S. economic momentum is slowing.

Companies added just 27,000 new positions during the month, according to a report Wednesday from payroll processing firm ADP and Moody’s Analytics that was well below Dow Jones estimates of 173,000.

The reading was the worst since around the time the economic expansion began and the jobs market bottomed in March 2010 with a loss of 113,000. Since then, the private payrolls count has increased by 21.3 million.

“Job growth is moderating,” Mark Zandi, chief economist at Moody’s Analytics, said in a statement. “Labor shortages are impeding job growth, particularly at small companies, and layoffs at brick-and-mortar retailers are hurting.”

https://www.cnbc.com/2019/06/05/job-growth-screeches-to-near-halt-in-mayprivate-payrolls-up-just-27k.html

The “economy” they speak of is the Wall St. econo0my not the Main Street economy……keep that in mind as you prepare for the search for a candidate in the 2020 election.

Since the pundits say the economy will be the main issue in the 2020 election……maybe the voter should keep a close eye on the facts not the political spin.

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But The Economy Is Surging!

This one situation could give Trump a second term….the “surging economy”……the jobs report is good, GDP is fair to partly cloudy, and the markets are doing well with a few hiccups here and there…..

But when we hear the economy is surging….what do they mean by the economy?

Best answer is…..An economy is the large set of inter-related production and consumption activities that aid in determining how scarce resources are allocated. This is also known as an economic system.

But Wages are flat! Inflation….real inflation not that piece of crap that the government uses to fool the crap out of his mortals, is getting higher. I mean how can you figure inflation without using energy, food and medicine in the equation? When we do we get a false indication of “good times”…..

The report of the surging economy is bullsh*t…..a bunch of manure spread by the MSM and the government to give us all some silly “feel good” moment……

Recent economic reports have President Donald Trump crowing.

The big headline numbers do sound encouraging. The unemployment rate is down to 3.6%, the lowest since 1969. Average earnings are finally outpacing inflation, the stock market has been hitting record highs, and the first quarter of 2019 had the fastest annualized growth rate (3.2%) since 2015.

And yet most of the gains from our growing economy are still going to those who least need a boost. Stock market rallies, for example, further concentrate wealth among the very richest Americans. The top 1% of Americans own more than half of stocks and mutual funds. The bottom 90% own just 7%.

For ordinary Americans, the slight uptick in wages is not enough to make up for many years of stagnation. Average hourly pay rose just 6 cents in April 2019 and 4 cents the month before that.

 
I mentioned “inflation” earlier…..Here is an explanation of inflation…..
 
 
Then there are those “glowing” jobs reports….we hear about them for days after the report comes monthly……but what about those jobs reports?

While the Current Establishment Survey (CES) Report (covering large businesses) shows 263,000 jobs created last month, the Current Population Survey (CPS) second Labor Dept. report (that covers smaller businesses) shows 155,000 of these jobs were involuntary part time. This high proportion (155,000 of 263,000) suggests the job creation number is likely second and third jobs being created. Nor does it reflect actual new workers being newly employed. The number is for new jobs, not newly employed workers. Moreover, it’s mostly part time and temp or low paid jobs, likely workers taking on second and third jobs.

Even more contradictory, the second CPS report shows that full time work jobs actually declined last month by 191,000. (And the month before, March, by an even more 228,000 full time jobs decline).

Ask yourself…is your family better off today than it was 2 years ago……if the answer is NO then you are not part of the reported “Surging Economy”….
 
The economy will be key to the Trump 2020 campaign…that and some crap about socialism…..Dems need to find a way to counter his message or face the consequences…..

Many in the mainstream media are telling us that the “good economy” favors Trump in 2020, and the Democrats are mostly mum on the subject, with Nancy Pelosi and the neoliberals hoping an anti-Trump campaign will win the day in the next election.

But simply running against Trump won’t work.  Democrats have to refute the myth of a “good economy,” then talk about what they’re for, what their values are, and what they are going to do for the American people. Sadly, the party’s leadership seems loathe to advocate progressive values, and incapable of explaining why the economy isn’t so great.

The reason an anti-Trump campaign won’t work is because the 2020 election will be determined by turnout. Anything less than 60 percent risks a Trump victory; and failing to embrace the progressive values embraced by the majority of Americans will likely keep turnout below that.

 
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If you will vote with your pocketbook then ask yourself that simple question….and pick a candidate and vote accordingly.