Voodoo Economics Returns

Roll us over and do it again!

Our Congress is once again on a break (is there ever a time when this isn’t so?)  They have tried health issues and failed…..they are talking abut some sort of gun regulations…..and since nothing is sticking to the wall then they will go to the ever popular tax reform.

And since the GOP is in control then we will try their fix for the economy…..supply-side solutions.

This solution has not been a answer for 30+ years….hey, why not try it again?

Our president has decided the “voodoo economics” will solve all the ills of our economy….

Billionaire US President Donald Trump wants to reform the US tax system, like others before him. But his plan looks more like tax cuts for America’s wealthiest and some of the world’s biggest corporations.

Although it’s yet to be fleshed out, it’s based on the idea that the cuts will pay for themselves, with the economic growth they generate in years to come. Yet, that’s never happened in the history of US tax cuts.

In economics jargon: this is a classic supply-side response to a demand-side problem. But why help companies and investors if workers are the ones in trouble?

It’s been done before and George HW Bush famously called it “voodoo economics” to discredit the notion that cutting tax rates will increase revenues.

Source: Donald Trump’s ‘voodoo economics’ | USA | Al Jazeera

An IST factoid:  Tax cuts have NEVER paid of themselves!

But you will be asked to buy into the dream anyway…..you cannot drain the swamp and keep the crap in place.

I have written on this subject before and pointed to the fallacy……..

Source: It Is Always Supply Side Economics – In Saner Thought

Source: The Humor That Is Trickle Down Economics – In Saner Thought

Source: Let’s End The Illusion Now! – In Saner Thought

A laughable solution that the population falls for almost every time.

Advertisements

Trumponomics

I recently read a fellow blogger and friend’s post about the Pres. Trump and the MSM on economics…..and it got me to thinking….but before I throw my couple of pennies into the fray…here is his post….

Source: Lame Stream Ignores Record-Breaking Stock Market Performance Under Trump | The More Than Unlikely Kingdom Of An Imaginary Billionaire Named John

I have said many times that Trump needs to hype the excellent market figures and the unemployment stats when he makes his on-the-road speeches.

There will be some that will say that the good economic news is just hold overs from Obama….but Trump is doing what every president, nay every leader has done….if you are the sitting leader then take credit for the good news…nothing wrong there.

After I read my fellow blogger’s post I got to looking into the thing some will call “Trumponomics”.

I found an interview that was posted on the pro-Libertarian site, The Unz Review……

SHARMINI PERIES: It’s the Real News Network. I’m Sharmini Peries coming to you from Baltimore. The rise of stock prices in the US stock market could be an indication of economic growth and prosperity, but it could also be an indication of the concentration of wealth of the rich and powerful. Which is it? To answer that question, we need to look at other economic indicators. In the press conference that President Trump had just a few days ago announcing his new chief of staff, General John Kelly, Trump took the opportunity to give himself credit for the rising stock prices. Let’s listen.

Source: Trumponomics and the Stock Market – The Unz Review

I found another op-ed that covers the phenon called “Trumponomics”

It has been six months since US President Donald Trump took office.

Amid a slow and disorderly White House transition – including a string of prominent departures – and an ongoing investigation into his Russia ties, Trump is trying to divert the world’s attention to the US economy.

The Dow Jones Industrial Average just hit the 22,000 mark for the first time in its 121-year history. Stocks headed higher even as Wall Street lost confidence that Trump’s election proposals like tax cuts and infrastructure spending will be pushed through Congress.

Source: ‘Trumponomics’: Making America great again? | USA | Al Jazeera

Trump needs to focus on these small successes and less on who said what about him…..make the case for Trumponomics…..it will force the MSM to cover and comment.

Closing Thought–12May17

DAMN!  I Wish I’d Said That!

Ever hear something that you like and thought that you had wish you had said it?

Like “I Think, Therefore I Am” or something similar.

Looks like our president Trump is claiming phrases as his own…..like when I tried to copyright “You’re fired”……well he is at it again…..

President Trump is making headlines because of an interview with the Economist, though probably not the ones he expected. One theme is on an odd claim he made about inventing the long-used phrase “priming the pump,” and another on the possibility of his releasing his tax returns—when he’s out of the White House. The details:

  • At one point, Trump asks the interviewer if he’s ever heard of the phrase “priming the pump,” which has been widely used in economic circles for at least the better part of a century. “Have you heard that expression used before? Because I haven’t heard it. I mean, I just … I came up with it a couple of days ago and I thought it was good. It’s what you have to do.”
  • As the Hill reports, Merriam-Webster quickly pounced. “‘Pump priming’ has been used to refer to government investment expenditures since at least 1933,” it tweeted. Another said: “The phrase ‘priming the pump’ dates to the early 19th century.”
  • At the Washington Post, Philip Bump is baffled. He cites multiple examples of Trump himself using the phrase previously and thus floats the possibility that Trump was joking. Or maybe he just “slipped into his long-standing pattern of taking credit where it wasn’t due.”
  • On the tax returns, Trump was asked if he’d be willing to release them in order to get Democratic support for his tax plan, notes CNBC. “That’s a very interesting question,” he said. “I doubt it.” He added that “at some point I’ll release them” because “I’m very proud of them actually. I did a good job.” And later: “I might release them after I’m out of office.”

Click for the full transcript, which includes the president’s thoughts on “Trumponomics” as referring to “self-respect as a nation” and “trade deals that have to be fair, and somewhat reciprocal, if not fully reciprocal.”

Does he not know the power of the Google?

I know most Republicans have not had an original thought in decades…..and what thoughts they have are usually from someone else…..but this is just sad.

No I do not think this is news….but I do think that we should know how silly and ignorant our president can be.

Enough!  Time to shut it down…..go now have some fun and a couple of laughs.

What To Expect From The Economy

I am spending Trump’s first full week writing about the situations that he will be facing and even predicting a few things to come…..

Just how are most Americans coping these days with the economy and their finances?

Minor emergencies like a busted pipe, flat tire or a root canal happen all the time. But for the majority of Americans, such inconveniences are potential recipes for financial ruin, according to a new survey by finance site Bankrate.com.

In the survey released on Wednesday, Bankrate found that 63 percent of Americans don’t have enough saved to cover even a $500 financial setback. And just half of higher income respondents (defined as $75,000 or more in annual earnings) said they have enough cash to handle such an emergency.

Source: Most Americans Lack Reserve Cash to Cover $500 Emergency: Survey – NBC News

Now there will be those on the Right that will have lots to say about these findings….none of which will be accurate…..

Let’s move on…….what can we expect in the economy in Trump’s first 100 days?

For President-elect Trump, boosting economic growth and creating more good-paying jobs recovery will not prove easy. George W. Bush campaigned on — and delivered — lower taxes and more limited government, but his economic expansion was no more robust than Barack Obama’s and ended with the 2007/08 financial crisis.

Mr. Trump has promised a lot that will be difficult to accomplish, because federal resources are limited. Without any new tax or spending initiatives, the federal deficit will grow as more baby boomers retire, and congress will not always cooperate.

Still public confidence is as important as government policies for inspiring growth, and he can still spell out a robust agenda during his first 100 days. Here are five things to look for in the new president’s first days.

Source: What to expect from the economy in Trump’s first 100 days | Fox News

FOX News, huh?

Not always the most accurate source for actual news but this one is something to consider when dealing with the economy….Morici is a respected economist so his opinions are worth considering…..

The last factor he, Morici, covers is that of trade…….and then word has come out about one of Trump’s first EOs….(more on EOs later today)…….

President Donald Trump on Monday will unravel the behemoth trade deal he inherited from his predecessor, as two sources familiar with the matter told CNN he plans to sign an executive order to withdraw from the negotiating process of the Trans-Pacific Partnership.

That executive order will send signals to Democrats and leaders in foreign capitals around the world that Trump’s rhetoric on trade during the campaign is turning into action. Trump vowed during the campaign to withdraw the US from the Pacific trade deal, commonly known as TPP, which he argued was harmful to American workers and manufacturing.
The executive order is expected to be the first Trump will issue Monday, a senior White House official said, and will amount to the administration’s first major action on foreign policy.
(cnn.com)
The economy will be one of the indicators to tell whether the Trump plans are working or not.

Only thing that is obvious is the Goldman-Sachs will have a good couple of years…..

Closing Thought–17Jan17

As we grow closer to the day of days when the country swears in the king of kings, Donald J. Trump…..and this election was much the same as every recent election…..the fear and loathing of immigrants.

One of the big “solutions” for Trump and his gang of cutthroats is DACA….Deferred Acion for Childhood arrivals…..one conserv solution to the immigration problem…

Let’s say they are successful and eliminate DACA….what will the economc cosats be for the states?

Since June 2012, more than 752,000 people who came to the United States as children have benefitted from Deferred Action for Childhood Arrivals, or DACA. This initiative has provided recipients with a temporary reprieve from deportation and renewable work permits. DACA has lessened the barriers for these recipients to reach their full potential—they have been able to secure good jobs, obtain driver’s licenses, and pursue higher education—so that they might better contribute to their communities. A 2016 survey of DACA recipients shows that they work across many different industries ranging from educational and health services to nonprofits. Along with receiving higher wages, DACA recipients are buying cars, homes, and other goods and services to boost local economies.

But this quintessential embodiment of the American dream is under attack. During his campaign, President-elect Donald Trump threatened to end DACA, along with other executive actions. While it remains to be seen what specific actions the president-elect will take, the fate of DACA is still uncertain. But if the president-elect ends DACA, whether in a single action or by allowing work permits to expire over time, the end result will be hundreds of thousands of young people losing their work authorization and effectively being forced out of the labor market.

(Oh there is so much more)

Source: Ending DACA Will Cost States Billions of Dollars – Center for American Progress

States lose revenue and where do you think the shortfall will come from?

Who actually will benefit from the elimination of DACA?

Closing Thought–28Dec16

Games People Play…..

Recently I was surprised to see that one of my followers, w1nt3l, knew of Henry George and the land value tax……it is an economic theory that I think would solve a lot of problems…..but few know of his theory these days of runaway greed….

When you were a kid or maybe just yesterday…did you ever play Monopoly?  Did you get a monopoly game for Christmas?

Did you know that Henry George was the inspiration for the original Monopoly……..BAM!  Drop the history bomb!

This is a little something to explain the game and its origins…..

A brief history of America’s favorite board game……(you just knew there would be a historic perspective in there somewhere, right?)

Source: Monopoly’s Radical, Anticapitalist, Feminist Origins – by Andy Warner

Back in the 80’s I studied at the Henry George Institute…..and to this day I firmly believe that his land value tax would be an excellent policy for this country to follow.

The Next Cuban Revolution?

Fidel is dead….and the world is on pins and needles….what to do…what to do?

There has been wold speculation at what the world can expect……some are calling for more sanctions to force change…..others think another revolution would be the answer…..and even others are just drooling over the possibility of return to Cuba to continue the rape of the country that was terminated when Fidel cam to power…..

But what lies ahead for Cuba?

Fidel Castro’s death raises the stakes in the debate over the future of the Cuban state and economy.

Fidel Castro’s death over the weekend produced cries of lamentation in Havana and jubilation in Miami. He had been declining for years; long gone was the legendary stamina that carried him through four-hour public speeches, all-night bull sessions, and endless provocations. On the few occasions he was wheeled out for public appearances in recent years, he seemed crotchety and frail.

For example, last March, as millions of Cubans met U.S. President Barack Obama’s historic visit to Cuba with curiosity, Fidel took to the state newspaper, Granma, to complain. Rather than considering Obama’s overtures as a new opportunity, he replayed an ancient litany of Cuban grievances, from Spain’s practice of slavery and the Americans’ Bay of Pigs invasion to vague accusations of Obama being racist. “We do not need the empire to give us anything,” he concluded.

Source: The Next Cuban Revolution? | Foreign Affairs

The answer my friend lies blowing in the wind…..(Dylan be damn)…..I’m not looking for much rational thought coming out of Washington on this issue….but I could be wrong….