Tag: economy

An Economic Change of Course

~ Joe Broadmeadow ~ Leave a comment

Well, there you have it. Donald J. Trump, in three short years, has performed a miracle with the State of the Economy.

His economic policies have sent the economy soaring, the stock market to new records, and righted the imbalance in trade agreements.

He took what was a country on the brink of disaster, one brought on by the policies of the previous administration, and saved the day.

But, like the line from my favorite movie, he would also warn you to “pay no attention to that man behind the curtain.” He doesn’t want you to look beyond the spectacle of his performance.

The issue is not whether the gains he claims are true—some are and he polished some to make them sound good—but whether his policies are responsible.

And therein lies the problem.

As anyone with a basic understanding of economics would know, the American economy is like a giant ship in the ocean.  Sometimes it is running at full speed with a following ocean and sometimes it is battered by storms.

No matter the speed at which it travels, turning this ship requires planning. One cannot just stop and head in a different direction. The economy can react and adjust course, but this all takes time. And there are other ships on this ocean—China, Europe, Southeast Asia—requiring course adjustments and communication.

Mr. Trump’s policies—the course corrections he has ordered—are just now turning the ship on its new course. Here is one example. His corporate tax cuts—which poured billions of dollars back into the profit margins of corporations—drove the stock market up, not the new course he set.

Where this course will take us is the issue. Mr. Trump is betting companies will pour their profits into new growth. Sounds hauntingly similar to another course correction set by a different President, Reagan’s “trickle-down” economics. The trickle never happened and the economy foundered on a rocky shoal.

Mr. Trump inherited an economy showing consistent growth in both employment and GDP. Instead of touting his “business” acumen and claiming to build on this, his megalomaniac ego demands he claim all the credit. Mr. Trump may be the captain of this ship, but if he doesn’t instill confidence and loyalty in the crew—even those who might disagree with him—the ship will founder.

This election will be decided by those who could not vote for Hillary, taking a risk on an untested entity, and by those who take the time to understand that the complexities of our nation require more than grandiose claims.

I fear we may steam at full speed toward another rocky shoal demanding it gets out of our way since this Captain cannot be wrong.

If you do nothing else significant this year, VOTE. Voting is the single most patriotic act within everyone’s power. Indeed it is a right paid for by great sacrifice worthy of being exercised.

Every vote matters!

Don’t take my word for it. Here’s an in-depth analysis of the real numbers. https://apnews.com/3750c39f92c817a6790098be323142df

Once Again, it is Obama’s Fault

~ Joe Broadmeadow ~ Leave a comment

 

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The disaster that is the Obama Presidency has struck again. His abject failure to improve on the robust economy handed to him on a silver platter by the Bush administration has caused the loss of more jobs.

Carrier Corporation, a division of United Technologies, is closing its Indiana plant and putting 2100 workers out of a job. The company cites labor costs and their inability to compete with other companies that made similar moves south of the border.

They did not say they would find better, more qualified workers. They did not say it was a shortage of workers. They did not say it was for better business prospects (they fully intend to sell things in the US, just not make them here.)

What they said they would find is cheaper labor. I bet they will.

Of course, this is Obama’s fault. Obama’s economic policies have not improved the economy and have hurt business according to his critics.

Odd, since the numbers do not reflect that. According to Factcheck.org, an independent non-political organization (http://www.factcheck.org/2015/01/obamas-numbers-january-2015-update/) under Obama:

  • 2014 was the best year for employment growth in 15 years (6 million more jobs since Obama came into office in 2009. Under George W. Bush the country suffered a loss of 4.4 million jobs in his last year)
  • Overall inflation under Obama has been moderate, 11.8%
  • Real weekly earnings (adjusted for inflation) has risen 1.7%
  • Corporate Profits have soared under Obama, after-tax profits are running at a seasonally adjusted annual rate of $1.9 TRILLION
  • Stock market is up 156% since Obama came into office.

There are some negatives as well. Long-term unemployment (those out of work for more the 27 weeks) is higher than before Obama. The number of families on food stamps is higher as well. Much of this is the hangover from the 2007-2009 recession.

I wonder if these negatives are compounded by business decisions like Carrier Corporation moving to find cheap labor in Mexico.

Now if I understand his critic’s positions, Obama has not done enough to improve the economy. What he has done has not worked and the Affordable Care Act has been a disaster. How can finding a way to provide health care to all Americans be a disaster?

If there are problems within the economy, I think much blame goes to companies that put profits before people. Some would argue that a company has an obligation to stockholders to seek cost reductions and increase profits. At what cost? It would seem at the expense of loyal employees that helped build the company in the first place.

We should not only accept but also applaud their narrow-minded, single purpose pursuit of profits over people. This is what made America great according to some. They would contend that is Capitalism.

Now I am not advocating socialism or any artificial redistribution of wealth. The opportunity to pursue the American dream IS what makes this country great.

What I am advocating is reinvigorating the essence of American capitalism. A capitalism with a heart for those that provide the bulk of the energy for that economic engine.

Funny how the same people that approve companies running to Mexico to avoid paying fair, negotiated union wages and benefits are the same ones with bumper stickers proclaiming Buy American.

I bet many of these same detractors of Obama also trumpet the idea of building a fence to keep the Mexicans from coming to the US.

Take heart, if Americans continue to support companies that flee the US to avoid paying fair wages, it will be Mexico building a fence to keep the unemployed Americans out of their country. Maybe Mexico can hire the unemployed Americans to build the fence as a form of foreign aid.

Somehow, that will be Obama’s fault as well.

Oh, and by the way Mr. President, since you haven’t done anything to help the economy why don’t you take the rest of your term off and NOT nominate anyone to the Supreme Court either. We got this.