Trumpenomics
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@jon-nyc said in Trumpenomics:
How he didn’t see this coming in November I’ll never understand. Or at least by February.
He was on stage with Trump while DJT was talking about the TCJA Cuts being made permanent and the Tax breaks on tips and overtime. So him bitching about the $5 Trillion and calling it new spending when it’s not new spending, just reduced receipts according to the CBO hits me as disingenuous at best. I have no doubt that he’s pissed there weren’t more and deeper spending cuts, I’m sure he’s pissed about the increased spending in some areas, but they are small details compared to the tax rates being made permanent. It really does make me think that all of this is the EV credits being rolled back, and the energy policy being presented.
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Worst half year performance of the dollar in over half a century.
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Let's fast forward and say this happens, or in 10 years we have a bajillion dollars in debt. Eventually what are the possible outcomes?
- Massive spending cuts?
- Massive tax increases?
- Dollar security faulters and causes worldwide economic depression?
It seems a mathematical certainty that if we don't change something, all the government will spend its money on is paying debt interest. Which would be quite appropriate given how many families do that today with their credit cards.
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Currency devaluation/inflation … we print (a lot more) money to pay off the debt. May or may not lead to “Dollar security falters” and/or “worldwide economic depression.”
Gotta compare with the alternatives. Cutting spending too much or increasing taxes too much may also lead to some versions and degrees of “Dollar security falters” and/or “worldwide economic depression.” There may be some versions of “printing money” that are less damaging than some versions of “cutting spending” or “increasing taxes.”
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I have but a simple brain, but an alternative would be to pass a 20-year spending plan that decreases spending on non-essentials, increases taxes for all, with a clear goal of what the "finish line" looks like, and once reached, an immutable law that spending must not result in XYZ debt unless 2/3 of the house and senate approve a wartime approval or some shit like that. In other words, a painful get healthy plan with strict fiscal guardrails in place.
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@jon-nyc said in Trumpenomics:
Kalshi, the betting market for which Don Jr is an ‘advisor’, is now predicting close to 50T of debt by the time Trump is finished.
I mean, on its own, that looks pretty fucking horrible, but by itself it doesn’t tell anywhere near the whole story. What would the alternatives look like? What happens if they allowed the TCJA cuts to expire? What does it look like if we cut spending even a moderate amount? The debt service and the entitlement programs would still push us to that point anyway, whether it’s 1-2 years earlier or later.
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So why aren’t we talking about the Jobs Report? https://thenationaldesk.com/news/americas-news-now/american-born-employment-reaches-record-high-as-foreign-born-jobs-continue-to-decline
A record number of jobs for American born workers and a significant drop in foreign born jobs.
Wages are up 3.7% over last year contrasted with 2.4% inflation, so that’s real wage growth.
https://www.usinflationcalculator.com/inflation/current-inflation-rates/
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@jon-nyc said in Trumpenomics:
Real wages have been growing since 2022. Though they’re down in q1 from 4q2024.
And it was fantastic for the illegals…
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Trump announced a 50% tariff on copper. I think we have maybe 5% of the world’s supply, Chile has like 30%.
Besides needlessly making construction and power generation more expensive, we’ve seen in the past when copper prices rise, so does crime as people steal/destroy things with high copper content to sell them.
Nice going, Trump.
