Federal deficit estimated at $984B, highest in seven years

Discussion in 'Current Events' started by AtsamattaU, Oct 25, 2019.

  1. AtsamattaU

    AtsamattaU Well-Known Member

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  2. stone6

    stone6 Well-Known Member Past Donor

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    He'll blame it on the Fed. We're at virtually "full employment." Yet, wages are still not rising significantly. Why? In theory, full employment should lead to labor scarcity, which in turn leads to rising wages. But it isn't. My guess is because of the lack of "effective demand." No demand = no economic expansion. No economic expansion = low GDP growth rate and less than expected tax revenue = rising deficits w/o corresponding reduction in spending.
     
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  3. AtsamattaU

    AtsamattaU Well-Known Member

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    More people may be employed, but soon they will realize the grind for the sake of lining the pockets of corrupt politicians and business elites like the Trump family is simply not worth it.
     
  4. opion8d

    opion8d Well-Known Member Past Donor

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    I'm a hopeless numbers guy. If your numbers are good, no explanation is necessary. If your numbers are bad, no explanation is possible. So, why no labor scarcity, and why no wage increases? It's puzzling. Your possibilities make sense. Another I have been wondering about is, "How many people push unemployment numbers down by holding multiple jobs?" Employment numbers are lag indicators, what else is lurking out there?
     
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  5. Ernest T.

    Ernest T. Newly Registered

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    Wow. Saw that number today. Close to a trill. May I ask: What is that other "Debt or Deficit" number that had some currency (no pun intended) a while ago. (20 trill)
     
  6. Daniel Light

    Daniel Light Well-Known Member

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    We are squandering an opportunity to pay down the debt now the economy is fairly strong ... but of course that would require that Trump be willing to take a hit on economic numbers, which his ego would not allow him to do.
     
  7. stone6

    stone6 Well-Known Member Past Donor

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    I have no data on why the economy is not rising faster with full employment. A bit of a puzzle? One possibility is that
    Thought of that...and would have to check it. I think "unemployment" is counted by the survey of households, not jobs. That would spoil that theory...but it's also possible they are counting differently today. But, for whatever reason, GDP growth is NOT what he predicted and as a consequence (along with his tax cuts) we get hit with a double whammy on revenue, leading to rising deficits.
    To finish the thought above...one possibility is that often during an economic downturn and high unemployment, producers will take that period to revamp production methods - i.e. introduce more automation to prepare for the next increase in demand at lower labor costs. However, if there is no increase in demand coming, capital spending doesn't make sense either.
    Guess I'd suspect another round of stagflation, with the additional profits coming from the tax cuts, being used in stock-buy-backs, executive bonuses, etc.
     
    Last edited: Oct 25, 2019
  8. Ernest T.

    Ernest T. Newly Registered

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    These numbers almost require scientific notation to express.

    Impossible to pay off.
     
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  9. PARTIZAN1

    PARTIZAN1 Well-Known Member

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    Sadly too many Trumpeizdas do not care if Trump lies or if his is destroying our country. Too sad!
     
  10. Doofenshmirtz

    Doofenshmirtz Well-Known Member Past Donor

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    Why is this a Trump lie? Why are his followers foolish? Both parties spend like thieves with stolen credit cards and all followers are foolish. As long as reps and dems fight with each other, our government can just keep spending our grandchildren's money.
     
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  11. pocket aces

    pocket aces Well-Known Member Past Donor

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    The Tea Party should come back any time now, right?
     
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  12. pocket aces

    pocket aces Well-Known Member Past Donor

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    Yet when the black guy was in the White House, a bunch of idiots put on stupid hats and protested. Where are they now?
     
  13. Doofenshmirtz

    Doofenshmirtz Well-Known Member Past Donor

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    Apparently, they are here on the forum referring to skin color and avoiding the topic.
     
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  14. Lil Mike

    Lil Mike Well-Known Member

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    You can't raise wages until you actually tighten up the labor market considerably more, but we're still importing as many immigrants as ever. We need to drastically reduce the number so labor shortages cause wage rates to rise.
     
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  15. Lil Mike

    Lil Mike Well-Known Member

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    Well I guess we are all in agreement that we need a balanced budget amendment. It's really the only solution. That could be Trump's greatest accomplishment if he drives liberals to finally support a BBA.
     
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  16. ButterBalls

    ButterBalls Well-Known Member

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    Simple, we haven't crossed that metric where expansion creates shortages in labor and labor becomes greater value to employers then profit..
     
    Last edited: Oct 28, 2019

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