U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 09-28-2018, 07:04 AM
 
3,555 posts, read 3,342,569 times
Reputation: 8366

Advertisements

Quote:
Originally Posted by Larry Caldwell View Post
I have doubts that Reagan is comparable. He was dealing with the deepest recession since the Great Depression, caused by the Federal Reserve dealing with a severe currency crisis. While Reagan ran the most massive deficits in history, he also raised tax rates to try to compensate. Easing regulations led directly to the Savings and Loan crisis. He was fortunate that loyalists like Ollie North were willing to go to prison to shield him from impeachment. Trump doesn't inspire that kind of loyalty.

In any case, the consequences to the economy may be the inevitable greed and dishonesty of big money interests. If they successfully keep money out of the hands of the general populace, consumer inflation should continue to be moderate, but asset inflation may be another story.

I don't see much indication that the deficit is leading to new production facilities. The news is about corporations indulging shareholders in stock buybacks. Do you think that our economic growth is solid enough that it will carry over into the next decade?
Foxconn is setting up a plant in the northern U.S., slightly smaller scale than they originally promised but nonetheless an interesting move.

Apple is repatriating hundreds of billions of dollars and moving some manufacturing to the U.S.

For the first time in many years, new steel plants are opening.

Intel opened a multi-billion dollar fab facility in Arizona.

All of the CEOs involved stated that they are consciously responding to the pro-business climate in the U.S.

I don't have time to round up all the statistics and information but the general trend is obviously toward increasing manufacturing activity in the U.S., not decreasing manufacturing.

Regarding buybacks -- you do understand that stock buybacks puts money in the hands of investors to reinvest into other ventures? It doesn't mean "greed" or "indulging shareholders". It means a company is strong enough to bolster its stock. More ownership means more control.
Reply With Quote Quick reply to this message

 
Old 09-28-2018, 07:27 AM
 
812 posts, read 454,708 times
Reputation: 1206
Quote:
Originally Posted by blisterpeanuts View Post
Regarding buybacks -- you do understand that stock buybacks puts money in the hands of investors to reinvest into other ventures? It doesn't mean "greed" or "indulging shareholders". It means a company is strong enough to bolster its stock. More ownership means more control.
BUYBACKS create a dangerous illusion. There are two ways for a corporation to grow earnings: 1) by increasing sales and lowering costs - real growth 2) by buying back shares - illusion or fake growth. By reducing shares outstanding, earnings rise.
We know the FED wanted this illusion. Low interest rates were/are also conceived to help corporations create the illusion of GROWTH (and to keep the US Dollar weak).


End stock buybacks, save the economy
https://www.dallasnews.com/opinion/c...s-save-economy

Corporate Buybacks, The Illusion Of Profit And The Looming Disaster For Your Portfolio
https://www.forbes.com/sites/investo.../#1642d1a77085

Don’t Fall for Corporate America’s Buybacks Scam
https://banyanhill.com/corporate-ame...buybacks-scam/
Reply With Quote Quick reply to this message
 
Old 09-28-2018, 08:49 AM
 
18,042 posts, read 12,747,852 times
Reputation: 13388
Quote:
Originally Posted by blisterpeanuts View Post
Foxconn is setting up a plant in the northern U.S., slightly smaller scale than they originally promised but nonetheless an interesting move.

Apple is repatriating hundreds of billions of dollars and moving some manufacturing to the U.S.

For the first time in many years, new steel plants are opening.

Intel opened a multi-billion dollar fab facility in Arizona.

All of the CEOs involved stated that they are consciously responding to the pro-business climate in the U.S.

I don't have time to round up all the statistics and information but the general trend is obviously toward increasing manufacturing activity in the U.S., not decreasing manufacturing.

Regarding buybacks -- you do understand that stock buybacks puts money in the hands of investors to reinvest into other ventures? It doesn't mean "greed" or "indulging shareholders". It means a company is strong enough to bolster its stock. More ownership means more control.


You do know there are a host of jobs or companies moving jobs offshore as well as the above which may or may not be true.

US steel certainly hasnít announced any plans to open 6 or 7 new mills

https://www.politifact.com/truth-o-m...-donald-trump/
Reply With Quote Quick reply to this message
 
Old 09-28-2018, 08:58 AM
 
2,213 posts, read 584,270 times
Reputation: 1610
Quote:
Originally Posted by blisterpeanuts View Post
It's not called a deficit stimulus package. It's simply a tax cut combined with regulatory reforms to make it easier to start and grow a business.

It's certainly working, if that's the goal. Business confidence is through the roof, employment is the highest it's ever been, economic activity is white hot.

The main thing holding back the economy right now is a lack of qualified people. Manufacturers all over the heartland report that around 50% of job applicants can't pass a drug test. That means, they're too stupid to go clean for 90 days before applying for a job. It's pathetic, and alarming, that our work force is this decrepit. Also, the birth rate is crashing. In my opinion, the only solution is to let in more immigrants, of the legal variety.

Now regarding the deficit -- yes, it's going to be high. An embarrassment to Trump, after criticizing Obama's massive deficits. He didn't want to sign the budget deal, but had to, in order to get his tax cuts and military increases passed. That's the way things work in D.C., and he's gradually learning the ropes. Next time, he may opt to veto any new spending until they agree to cut budgets.

The last few quarters, though, there have been record tax receipts despite the tax cuts. So that's probably a sign that we can balance the budget. He's been focused on other issues, but in the long run... he has to cut spending.

I suspect that the Trump Administration will end up much like the Reagan Administration -- incurred some massive deficits up front, but laid the groundwork for future prosperity. Reagan created the conditions for the 90s prosperity, and Trump is creating the groundwork for massive economic growth in the 2020s and beyond.
I agree!

That, and broken equipment. I'm at work waiting for machines to be fixed...........
Reply With Quote Quick reply to this message
 
Old 09-28-2018, 12:21 PM
 
8,501 posts, read 3,662,923 times
Reputation: 1657
Quote:
Originally Posted by Larry Caldwell View Post
The huge deficit stimulus package has resulted in very low unemployment and very high business profits.

As far as I know, this is the first time the feds have ever unleashed a massive stimulus package during a solid economic recovery. Should we have done this before? Do you like it? Do you think it's going to run the economy into total ruin?

What do you think?

Nothing like cutting taxes AND spending more at the same time! This would have been much more appropriate in 2009.


Great deal so far. As long as it doesn't create any more noticeable inflation.
Reply With Quote Quick reply to this message
 
Old 09-28-2018, 12:23 PM
 
8,501 posts, read 3,662,923 times
Reputation: 1657
Quote:
Originally Posted by Lowexpectations View Post
You do know there are a host of jobs or companies moving jobs offshore as well as the above which may or may not be true.

US steel certainly hasnít announced any plans to open 6 or 7 new mills

https://www.politifact.com/truth-o-m...-donald-trump/
No, not 6 new mills.

U.S. Steel to invest $750 million to revitalize flagship Gary plant in wake of Trump tariffs - Chicago Tribune
Reply With Quote Quick reply to this message
 
Old 09-28-2018, 12:32 PM
 
18,042 posts, read 12,747,852 times
Reputation: 13388
Which isnít the same as the statement that was made
Reply With Quote Quick reply to this message
 
Old 09-28-2018, 12:33 PM
 
Location: Myrtle Creek, Oregon
11,507 posts, read 11,873,307 times
Reputation: 17963
Quote:
Originally Posted by blisterpeanuts View Post
Foxconn is setting up a plant in the northern U.S., slightly smaller scale than they originally promised but nonetheless an interesting move.

Apple is repatriating hundreds of billions of dollars and moving some manufacturing to the U.S.

For the first time in many years, new steel plants are opening.

Intel opened a multi-billion dollar fab facility in Arizona.

All of the CEOs involved stated that they are consciously responding to the pro-business climate in the U.S.

I don't have time to round up all the statistics and information but the general trend is obviously toward increasing manufacturing activity in the U.S., not decreasing manufacturing.

Regarding buybacks -- you do understand that stock buybacks puts money in the hands of investors to reinvest into other ventures? It doesn't mean "greed" or "indulging shareholders". It means a company is strong enough to bolster its stock. More ownership means more control.

There is no doubt that manufacturing is on a roll in the US. It was enjoying a robust recovery long before the current economic stimulus, which is the point of my question. Will the bill come due and bring everything down, or will we build enough momentum to sail through the next crash? If things were already going good, was it wise to toss more fuel on the fire?

Most of your post looks like press releases. The Intel Fab42 won't be open until 2020 or 2021, and has been planned since 2011. The "new" steel mill is a closed plant that was bought by an Indian company that is still dikering for reduced electrical rates. Apple is not bringing any manufacturing jobs back to the US, but they are expanding their data centers and customer support.

The big manufacturing winners are in the military sector, not the civilian sector. Lockheed-Martin is flying.
Reply With Quote Quick reply to this message
 
Old 09-28-2018, 03:51 PM
 
3,769 posts, read 3,116,566 times
Reputation: 10472
Most people associate the "good times" with the fact of their working and earning a paycheck. Charts and graphs aside, the American economy, a thing we can only generalize about, is on a roll, and the why's and wherefores of a huge debt fueled spending spree means nothing to the average person.

Making money--that's the key to staving off any rebellious types who may try to crash the gates of the US financial system. We are forever hooked on the government teat for our financial sustenance, but that doesn't negate the thrills of a non stop circus of entertainment, that's the day to day American reality--distraction. And on that note all is well in the good o'l US of A. We will. like always, go until we can't, don't worry the government and Wall Street has this stuff all figured out!!
Reply With Quote Quick reply to this message
 
Old 09-28-2018, 08:09 PM
 
Location: north narrowlina
766 posts, read 251,586 times
Reputation: 3127
you call this a solution? it looks good now, in the temporary. Let's discuss this four-six years from now when ALLLLLLL THE BENEFIT IS SOLELY FOR THE CORPORATIONS AND THOSE TEMPORARY TAX CUTS FOR THE MIDDLE CLASS DISAPPEAR. It's a scam, and temporary and won't effect long term change..... and what is worse is the moral toilet of their swamp they promised to drain, and the truly long long term wounds and scars that they keep opening up, rending our fabric as a people, all for political gain and billions of dollars they will pocket, all at the expense of those least able to withstand their policies. You put all your faith in the gawd almighty profit.... i'd rather have a government that truly honestly cares about we the people not his cronies..... yeah, he-who-shall-not-be-named is making America great again, great for greed, great for gain, great for profits, great for the rich to get richer.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2019, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top