Economic reality check

But you refuse to compare the Trump economic policies with the Obama economic policies. What results in higher growth, small business tax of 25% or 39%, corporate income tax rate of 21% or 35%, ....

 

Again, try looking at the actual growth over that time period instead of theorizing. Also quit pretending that these tax rates are the only differences between the two. It is embarrassing.

 

The rate appears to be dropping. The Fed held the interest rate at ~ 0% for the entire Obama Presidency because the economy was so weak. So weak that they were attempted to resuscitate the economy by quantitative easing. They began to raise rates and also remove ~ $60B per month of the quantitative easing reserves when Trump's economic policies resulted in much stronger economic growth.

BTW at the beginning of 2017 the rate was 1 1/4%.

 

Again compare the policies. Economic growth would have been less with Obamanomics in the specific time periods of the Trump Presidency. Trump won because the people rejected another 8 years of Obamanomics. Under Obama the Fed printed money and held the interest rate ~ 0% for most of his 8 years. Under Trump the Fed is pulling money out of the reserves and raised rates initially for no reason until recently reducing those rates again.

 

You claim to be comparing "policies" while only cherry picking individual positions, then you guess about the results. In reality, you could just look at the results. Give it a shot. Take a look at any economic indicator you like, literally any one, and look at it from 2009 until now.

 

You refuse to compare policies under equal conditions. That's telling. Also the global economy is slowing now where as it was in high growth recovery mode (except for the US thanks to Obmanomics) in the Obama years.

 

This straw man has already been burned to the ground. You aren't comparing policies overall. You are cherry picking specific tax policies. And you still refuse to look at actual growth (or literally any other economic indicator) over the time period in question. That's quite telling. I've quoted Trump. I've cited the numbers. You've refused to do either. Good luck with that.

 

Again your refusal to compare policies ?? Very curious ?? Actually not because the Trump policies are clearly superior as anyone who understands economics would know.

 

Please read: what I am refusing to do is to compare cherry-picked actions without looking at any real-world results. You insist on ignoring much of Trump's actions and motivations in order to shine a light on a fantasy version of him while absolutely refusing to look at any economic indicators. No one even vaguely versed in economics would fall for that. There's a reason why economists, on the whole, have rejected Trump's trade war and his economic policies and why they have widely criticized his protectionism.

 

I have refused no such thing. Why are you making up nonsense and pretending it is true.

Just as you claim that the US is in a rising interest rate environment was absolutely and demonstrably false ... where is your evidence that a lower tax rate necessarily leads to higher growth. How about a rate of "zero" If 21% is better than 35% ... is 0% then not that much better ?

 

Why does the right wing claim tax cut economics works?

 

Indeed the rate in 2017 was 1.25% - which was way higher than in 2014 when it was less than 0.5%. Now the rate is much higher than that - at over 2.5%. That is why we are in a rising interest rate environment and your claim was completely false. You do not look at a change in interest rates over a week or a month or even a quarter and claim the direction of interest rates on the basis... unless of course one has very limited understanding.

I am fully aware of what quantitative easing is and how this helped reduced interest rates but this is not the only thing that affects the rates we pay on our debt. Regardless this does not change the fact that we are where we are "NOW".

If you can borrow money at 0.4% a year - say 1 Trillion dollars. The interest payments will be 4 Billion/year. If you have to pay 2.5% the payments will be 25 billion per year. Big difference. That is where we are now.

Not only is the money that we borrow this year financed at the "NOW" rate. All the 2 year debt we accumulated in 2014 had to be refinanced at higher rates in 2016.. and then at higher rates yet in 2018.

In addition - the fed accumulated over 4 Trillion on its balance sheet through QE. At some point this also has to be sold into the market .. some of which was being done starting in 2018.

We do not set the interest rate for the debt we are trying to float. The market sets the rate and this is on the basis of supply and demand. If supply is high and demand is low - you have to keep increasing the rate until someone pulls the trigger and buys your debt.

As you can see - the three factors listed above all increase supply. This is happening at a time where demand for US debt is weakening.

That is why we are in a rising interest rate environment.

 

as I understand the saga it all started to unfold when Nixon took us off the gold standard

I just remember mr. Donald Trump saying I alone can fix this

What a crock of s***

 

You will not compare individual policies ?? That’s ridiculous.

 

Not cherry-picked picked policies and not unless we are also talking about the numbers, no.

 

Your graph shows that the rate is declining.

Yes, zero would result in even higher growth. Anyone who understands economics understands that.

 

That’s too funny.

 

It’s now declining.

 

No, funny is pretending to have a conversation about the economy and Trump's approach to it while ignoring all economic numbers and what Trump has to say about his own economic motivations and beliefs.

 

What’s funny is that someone who aced all their economics classes cannot tell the growth differences between economic policies. That’s ridiculous.

 

...only lousy capitalists lose money on public policies.

 

I do find #1 a bit hard to believe and found
https://news.gallup.com/poll/246602/americans-confidence-finances-keeps-growing.aspx

Story Highlights​

69% expect their financial situation to improve over the next year
Optimism about finances over the next year is almost at a record-high level
50% say they are in better shape financially than a year ago.


Mine is Gallup.
Yours is MSN

 

You are attempting to use cherry-picked policies as proxies for "Trumponomics" and "Obamanomics." We've been through this before a few times: economists generally favor lower corporate and other business tax rates for growth, but they are more likely to side with Obama than Trump on things like trade and immigration (immigration restrictions being one of the most economically destructive activities governments engage in, if not the most). On the whole, I haven't seen a Republican candidate more disliked by economists since Buchanan.

 

I am asking you to evaluate economic policies which you refuse to do. And again you continue to misrepresent Trump’s trade objectives and immigration policies.

Name some economists dislike Trump’s economic policies ??

Obamanomics was a disaster which could not produce a 3% growth rate in a global recovery with the Fed printing money and holding interest rates at zero.

 

You say "misrepresent", yet I quote him directly and cite his policies. And Trump hasn't passed 3% either. Accept/address those facts and then maybe I'll consider doing more homework for you.