Nothing to see here, right Trumpettes? Just more evidence of Trump’s lies - this one about balancing the budget. Does it bother any of his foolish followers that his historical solution to runaway debt is to declare bankruptcy? Or are they still so afflicted by Trump Delusion Syndrome where they think his detrimental actions have no impact on reality? https://thehill.com/policy/finance/464764-federal-deficit-estimated-at-984b-highest-in-seven-years
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.
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.
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?
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)
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.
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.
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.
Yet when the black guy was in the White House, a bunch of idiots put on stupid hats and protested. Where are they now?
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.
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.
Simple, we haven't crossed that metric where expansion creates shortages in labor and labor becomes greater value to employers then profit..