US economy under Trump

Bring on more taxes... its a good mid term promise....


Workers' Benefits Boom After Tax Cuts — So Why Not Make Them Permanent?

Extract...

The truth is, as a new report shows, average American workers are benefiting not solely by having their incomes boosted by tax cuts, but by having bigger benefit-packages, too.

Rather than focus on the abstract benefits of the tax changes, Americans for Tax Reform has listed literally dozens of companies that are delivering more benefits to their workers, thanks to tax cuts.

In a faster growing economy with a tightening labor market — and that's where we are right now, with 4.1% GDP growth and a 3.8% unemployment rate — companies have much greater incentives to retain good workers. So, with the higher profits from tax cuts, they boost pay and benefits.


Got to love her...
Tax cuts and more money in your pocket is nothing but a ‘dark cloud’ for Democrats

 

You seem to be contridicting yourself.

The Australian economy is very closely linked to the rest of the world - and mostly to the US and it's primary product trading in the NY market and it's stock market. You only have observe how the ASX follows the DowJones.

So, if the US is booming then Australia will follow suit - if the US is tanking then Australia will be the canary in the coalmine (being a more globally sensitive export market).

You can't have it both ways

 

I agree if US share market tanks so will Australia, that's my point... I thought I explained this

There are many other factors that impact on the state on an economy, ie jobs, manufacturing, tax reforms, regulations, interest rates, government, market sentiment, business confidence, property markets etc etc

As I mentioned earlier GDP is the benchmark/measure of the health of an economy, current GDP figure of 4.2% is an indication of strong economy, high productivity. You appear to be ignoring this major factor.

 

Because I am a wide reader in terms of how economies function and understand the GDP is not all it seems at face value - and is definitely not reflective of how it is presented by the government ... and neither is employment rates (but we've already discussed that the official rate is radically different from the true rate).

"Nobel prize-winning economist Joseph Stiglitz and MIT professor Erik Brynjolfsson noted at the recently concluded World Economic Forum in Davos, Switzerland, "GDP is a poor way of assessing the health of our economies and we urgently need to find a new measure."

Full article here: Why GDP fails as a measure of well-being

Dozens (I simply picked the one at the top) advise that the majority of the strong GDP is caused by the tax cuts to the 1% and the introduction of tariffs

Second-quarter GDP jumps 4.1% for best pace in nearly four years

GDP is also the "gross" - so if the top 1% of individuals makes a damn fine tidy turnover (boosted by recent tax cuts) their improvement drags up the entire GDP calculation. GDP also includes increases in profit due to the increase in automation rather than human jobs. This improvement is not necessarily reflected in the other 99%.

 

Except that he promised the cuts would be enacted prior to the mid-terms - yet congress is not sitting again until "after" the mid terms and Trump has advised he will not be signing it as an executive decision ... a promise made that he is fully aware he cannot deliver on. So - he knowingly lied

Trump is already backtracking on his promise for a 'very major tax cut' before the midterms

 

No - you said this: "Personally I have far more concerns Australia will tank with what is currently happening, time will tell"

 

I am probably the opposite to you... pay very little attention to economists and experts, they always seem to get it wrong. I much prefer to see what is happening on the ground, and also pays to not focus on the left baised media, they will always down play any of Trumps successes. Especially now they are heading for mid termed. Mind you, its a tad difficult cos the numbers don't lie.

You we go again, this is an oldie but a goodie, reason why they always get it wrong

"Ten Reasons Why Economists Always Get It Wrong."

 

Yes I do have more concerns about Oz......and I was right Oz share market tanked today

Its going to be one hell of a roller coast ride......

Not only shares but Australan property market is going south

 

It's following the US share market down ... so can't have it both way - Australia tanking and the US booming

 

..Yes, but we are talking stock market correcting.... does not mean the economy is collapsing.

 

It is gong to be gripping watching this unfold. Where USA companies have exposure to China area of influence and supply lines, and many do, especially in the tech area, then the costs including the cost of the tariffs are not going to be flash for their bottom lines. So absorb costs, ie less profit, or pass those costs on to unhappy customers. If that pans out it doesn't auger well for earnings and most likely share prices.

 

So any other reasons why oz shares tank today??

Interest rate rises
Negative market sentiment
Property markets tanking
Economy

Any thoughts

 

Interest rates - reserve bank hasn't moved but banks have, yet lending has tightened responsibly
Market sentiment isn't negative - but viewing of the mid-terms is
Property market has slid back - as it always does after an overshoot in capital cities, mainly it's stalled
Economy - wages haven't risen in line with inflation, same as the US

Main reason? Following the Dow Jones

 

How's that winning going - as 20,000 lose their jobs?

General Motors to close Detroit, Ohio, Canada plants

 

microsoft is winning !! no.1