One might fairly say that Orange Julius Caesar has had a year, nearly, of riding on Obambi's economic coattails. So, here's what briefing.com had to say just now (8:33 am):

Just in, personal income climbed 0.3% in November (Briefing.com consensus +0.4%) following an unrevised increase of 0.4% in October. Meanwhile, personal spending rose 0.6% in November (Briefing.com consensus +0.4%), up from a revised increase of 0.2% in October (from 0.3%).

The PCE Price Index increased 0.2% in November (Briefing.com consensus +0.3%), while the core PCE Price Index, which excludes food and energy, increased 0.1% (Briefing.com consensus +0.1%). Year-over-year, the core PCE Price Index is up 1.5%.

November durable goods orders increased 1.3%, which is worse than the 2.1% increase expected by the Briefing.com consensus. The prior month's reading was revised to -0.4% from -1.2%. Excluding transportation, durable orders decreased 0.1% (Briefing.com consensus +0.4%) to follow the prior month's revised increase of 1.3% (from 0.4%).

So, giving away the Damn Gummint's tax money to the billionaires will surely cause the economy to rocket. Won't it????

Dat slope, it be slippery when dares nuttin but greased kiddie slide betwixt youself and dat Pit. And dat Pendulum, it do be swingin. Best keep yo neck out de way.

Or as the Wicked Witch of The West put it: "I'm melting!!"

Views: 71

Comment by koshersalaami on December 22, 2017 at 8:35am

The tax plan can't accomplish anything other than making some people richer short term. Long term, probably not, as it will devalue some investments. 

The tax cuts for the wealthy will accomplish nothing. We already know from the Bush tax cuts that the wealthy will not use the savings to hire people, and we further know that these cuts will make investing in companies that hire people even less profitable because these same cuts will reduce demand. More on that in a minute. The cuts will not increase wealthy consumer spending because they already have tons of disposable income. These cuts will be reinvested, creating zero demand. 

The tax cuts on corporate overseas money will accomplish nothing because the idea is to bring that money into the country to invest in jobs here, but companies asked whether they will do that with the savings have almost universally replied No. Already. Up front. The beneficiaries have explicitly told us this won't work before it is even put in place.

The tax cuts will further impoverish Government, meaning the government will not be able to bail out the customer base as it sinks. 

The tax raises on the bottom end of the income scale(cutting benefits is the functional equivalent of raising taxes) will reduce disposable income and reduce consumer demand, because any money taken out of poorer pockets reduces demand immediately, unlike with the wealthy. This means the number of jobs will shrink, shrinking demand, shrinking the tax base, and shrinking the economy. 

If I were a foreign power trying to throw the United States into decline, this is how I'd do it. 

Comment by Robert Young on December 22, 2017 at 9:33am

spoken like a fellow Keynesian.  hopefully, the shit kickers will figure it out by Nov. 2018.  although, hope is for suckers, according to a line from "Criminal Intent".

Comment by koshersalaami on December 22, 2017 at 11:19am

I came by Keynes Bass ackward. I figured out how I thought economies worked from my own observations, then found who got there first and it was Keynes. That’s one reason I don’t use jargon/terminology: that’s not how I got there

Comment by Robert Young on December 22, 2017 at 12:20pm

the other thing I do is relational databases, and there the nay-sayers dismiss the tech as just "common sense" not worthy of active study.  one might say the same about how democratic economies work.  anyone can make an autocratic economy.  nothing could be simpler, and was the only way it was done until after WWII.  no.  not earlier.  the adults in the room learned a lot from that war, and applied the lessons.  the current bunch of bozos are too young and never read history, so they have this primal craving for the social Darwinism of the 19th century.  life was so much better then.  right.

Comment by koshersalaami on December 22, 2017 at 3:12pm

I don't exactly where this "Government is horribly inefficient" crap came from. And the "regulations kill efficiency" myth is even worse. 

Comment by joebanana on December 22, 2017 at 4:04pm

I understand that taxes on wages and salaries are unconstitutional. "Income" is defined in the tax code as profits from investments, and business transactions. Key word, "profits", money from nothing. Wages are an even exchange of labor for compensation, no profits are generated. But.....wadda I know?

What's it called when you threaten to do harm to someone if they don't give you money? Or, take someones property, real or personal, by force, up to, and including deadly force. Can you just say you provided some "service" unsolicited, and demand payment, even if that "service" was unwanted, unnecessary, and/or unused?

When the Mafia did it, it was called extortion.

Comment by koshersalaami on December 22, 2017 at 4:40pm

So if you don't want to pay road taxes, you're not allowed to leave your driveway? 

Comment by Robert Young on December 22, 2017 at 5:02pm

income taxes were deemed unconstitutional before the 16th amendment, ratified in 1913; which explicitly made income tax constitutional.

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