U.S. Economy Grows at Faster Than Expected 3.2% in First Quarter

Democrats are hoping for an FDR-type depression.

 

Corporate debt is at an all time high over $9 TRILLION or 46% of our annual GDP! Most of it borrowed to buy back corporate stock reducing outstanding shares, thus driving up share price and enriching executives who take shares as part of their annual compensation.Distorting the true value of both the company and the real share value.

 

Tax cut economics?

 

The amount of revenues and whether it is a record amount is not a factor of the percent of GDP.

 

We are at an all time high of economic activity so why the surprise corporate debt rises with it. And companies have been using profits to buy back shares which means investors can then invest in more promising investments.

 

Yet the left's God, Obama, said this was not ever going to be possible again. There is that.

 

More importantly, the Trump haters stated if he won, the economy would tank. It has not. They were wrong. He was right. Let a Democratic opponent say someone else would have done better.

 

3.2% GDP
Rising incomes
Best employment numbers in decades by some measures ever.
LFPR improving
My retirement accounts looking better and better

 

The added spending was mainly for our depleted military. The so called trickle down effect that some complain about are those who have no vested interest in 401K's and other tax deferred savings plans. One can argue either way but the wealth effect of a thriving economy is real. When people see their investments doing well, they spend more. That is discretionary spending that would not take place without growth. Companies may engage in buybacks. Mature companies with less growth may increase dividends. Either way, it does filter down to stake holders, those who are working and also saving for their future, funding their children's education or other deferred needs.

Raising taxes in a strong economy is not a winning strategy. The budget deficit is an ongoing problem that is not going to be solved by any single president. All we can do is try to offset the deficit with smart policy that keeps our economy strong. Trade, immigration, cyber security, counter terrorism and foreign policy helps the USA and our global economy.

 

Our military isn't depleted, we spend far more on the military than anyone else. There is a trickle down effect but the fact that most growth goes to the top 1%, its modest at best and probably not worth the debt. Jobs do get created, but having the money is only one factor and companies need consumer demand to create jobs. In addition, unemployment is already so low that these extra jobs aren't that helpful and these debt-fueled tax cuts may actually create an economic bubble which will burst. These investments are going to help the wealthy far more than everyone else because the bottom 80% only own 8% of the nation's financial wealth. We can see this from the fact that corporate profits have been at an all-time high and top 1% wealth has dramatically increased but wage growth for workers is very weak.

A more potent strategy is directly cut taxes for the working class and help businesses by boosting consumer spending and to do these tax cuts when the economy isn't doing well. Another one is tax and regulatory reform as these help the economy and don't increase the deficit. Also, our economy has become more concentrated and dominated by big corporations and this hurts price and employment competition. So we should also target our business tax cuts to smaller corporations which have a far more difficult time anyway. We should also complement our tax cuts with spending cuts to not hurt future generations.

 

Nine year trends, huh? So the downward trend appeared when Obama was first elected and ended a year after he left office when Trump took over.. Is that the new Leftist taking point? If so, keep it up.

 

Yes, an 8 year impasse with record debts, racial strife and corruption. The genuine Hope and Change began after he left office.

 

Obama's military budget was larger than Trump's budget because of war spending in Iraq and Afghanistan. This takes precedence over development of new technology or replacing worn out equipment. After a war and after leaving a lot of hardware behind, our military did in fact become very depleted.

Trump had proposed an additional tax cut for the middle class but it can't happen with a dem house majority. The term "middle class" is sort of a joke. It is dependent on where you live but the threshold everywhere is so low it includes a number of individuals and families that already receive a number of other entitlements.

The top 1% is also misleading. It can mean anyone making 200K per year or a person with a few million in the bank. Going after the super rich is a total waste of time. There are not that many billionaires and they all have good lawyers and tax accountants.

 

Military spending can be hard to define but lets look at defense and defense related spending by the DoD more broadly rather than just the defense budget only. Obama came in with defense spending at 815 billion and while it varied up and down by year, it has stayed at that level. Trump has been increasing military spending year by year and the 2020 total budget is currently at 990 billion. Our depletion is due to our over-extension in the Middle East, and if we gave more responsibility to our allies, we could easily slash spending to what it was in the 90s and still have a nice military.
https://www.thebalance.com/u-s-military-budget-components-challenges-growth-3306320

I understand that terms like Middle Class and 1% aren't entirely clear but we do need some ways of differentiating between high income and middle income people, even if the measures are sometimes funky.

I don't believe in going after the super rich. We should simply maximize the prosperity of the working class. It that means cutting taxes and regulations, so be it. If it requires the wealthy paying a little more to benefit the working class then so be it. If it requires increased investment in reducing climate change, improving technology, and education, then so be it.

I believe that regulatory reforms and tax cuts to the working class and small businesses combined with spending cuts in areas that are least helpful to the working class is the best strategy for helping the working class.

 

Are you saying revenues aren't calculated as a percent of GDP?

White House Budget Proposal

https://www.whitehouse.gov/wp-content/uploads/2018/02/budget-fy2019.pdf

Table S-1 Budget totals

Budget totals as a percent of GDP

Receipts;

2017......17.3%
2018...…16.7%

Now, if you google White House FY2000 Budget Proposal, look for the pdf, then go to Table S-1

Receipts as a percent of GDP

2000...….20%
--------------------------

 

I have been quite clear in what I said, actual tax revenues is what counts. As a percent of GDP has what bearing on what? If GDP does down and tax revenues don't go down as mush then we collect more tax revenues as a percent of GDP. Would that be a good thing? If GDP goes way up, like 3.2% last quarter and we collect a record amount of actual tax revenues but as a percent of GDP they fall what is bad about that?
Do you believe the government as a claim on a certain percentage of GDP no matter what it needs to run itself?

 

I think we are getting close to a consensus.

Take another look at Trump's tax cut. This tax season was the first opportunity for many to see that they did in fact have receive a cut.
Small business has been a sector that has seemingly not benefited from Tax cuts but it may have to do with accounting more than reality. A lot of small companies are start ups that are paying down debt. On the other hand any company large or small can be taxed as a pass thru. Generally though, small cap companies have not performed as well as expected.

 

I have no idea what this mismash is supposed to be saying about GDP and the Clinton tax rate increases and then the Gingrich/Kaisch tax rate cuts but here is the history

1992 3.6
1993 2.7
1994 4.0
1995 2.7
1996 3.8
1997 4.5
1998 4.5
1999 4.7

His tax rate increase slowed GDP growth and the Gingrich/Kaisch got it back it back on track. That slowing of GDP cost us revenue whilce the tax rate cuts got that growth back on track hitting double digit growth and the Republicans balanced the budget.

 

socialized wealth redistribution?

 

they gimp is just borrowing trillions so companies don't need to pay taxes.
he is going pass the bill to the next president, since he has no plan how to pay it back.

 

Tax cuts for working class were modest at best in the range of hundreds of dollars for most people while the wealthy benefited a lot more.

I would have done no tax cut for the top income tax bracket, increased the tax cuts for the lower ones, no change for the top corporate tax rate and deeper tax cuts for the lower corporate tax brackets. As a bonus I would have cut federal spending and simplified regulations.

 

I think we could too if Congress could get a major jobs bill passed, contact your local Congressperson on actually doing his/her job.

 

Obviously, you're not honest with yourself, thus, keep chanting 'WE HAVE RECORD REVENUES" if it makes you feel any better.

 

Quote: Best employment numbers in decades by some measures ever

Are you making a comparison?

If so, by what measure(s)?

 

Obviously, you're not honest with yourself, thus, keep chanting "We have record revenues" if it makes you feel any better.