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Trump Domestic Policy - Budgets, etc


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1 hour ago, TGHusker said:

Where the GOP went wrong is in making tax cuts a continued economic policy.  There is a point of diminishing returns and and even beyond that hurt.  Too much tax can be a wet blanket on growth, while too little taxation either stifles needed spending or runs up huge deficits as we never cut needed spending  - we always find more "needs' to spend money on.  As noted in my post above the deficits are out of control now - we haven't gotten the Reagan years growth but the tax cuts remain and spending has increased.    Even during the Reagan years there were targeted tax increases.    In the same way that it would be almost  blasphemy for a Dem to  say they were Pro-border wall, it is blasphemy for a GOPer to say they are pro-tax.   

Our partisan ways throw all reason out the window.

In the Reagan years the President and Congress realized the 1981 tax cuts were too big and raised taxes in 1982, 1983, and 1984. And then a larger overhaul of the tax system was done in 1986. So even Reagan himself wasn't constrained by the "blasphemy" of raising taxes.

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What would the policy look like if it worked?

 

I would think if it worked we'd seen incomes increase. All this burden that's removed from big companies is supposed to help them grow and then they pass it down to the employees, right? But that isn't happening.

 

FT_18.07.26_hourlyWage_feature.png

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http://www.crfb.org/papers/analysis-cbos-january-2019-budget-and-economic-outlook

 

CBO’s latest projections show that the fiscal situation will continue to deteriorate as a result of irresponsible tax and spending legislation and the growth of health, retirement, and interest spending. Lawmakers must act sooner rather than later to prevent the slower wage growth, higher interest payments, reduced fiscal space, and increased risk of fiscal crisis that would likely occur on our current path.

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4 minutes ago, BigRedBuster said:

 

 

 

 

I’d think the number one goal of a trade war would be to increase production here of the same products, and increase jobs in those areas.

 

But that’s a very expensive prospect if you don’t have the facilities in place already. And the people who have $ to do it probably don’t want to risk it because at some point they must assume the trade war will end and China will undercut them again.

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7 minutes ago, Moiraine said:

 

 

 

I’d think the number one goal of a trade war would be to increase production here of the same products, and increase jobs in those areas.

 

But that’s a very expensive prospect if you don’t have the facilities in place already. And the people who have $ to do it probably don’t want to risk it because at some point they must assume the trade war will end and China will undercut them again.

You basically summed up some major problems with this.

 

a)  We are at full employment now.  We don't have the labor to have a major expansion of manufacturing right now.  Oh.....and immigration of workers is a bad idea...I guess.

 

b)  Building of factories and infrastructure isn't something that happens over night.  It takes years to accomplish.

 

c)  There is no guarantee that whatever gains are made are going to be long term.

 

d)  Some people don't like this, but we are in a global market.  Yes, the trade wars might be sort of forcing the issue of bringing jobs back to the US.  But, it's also hurting the global economy. So...in turn, it's also hurting the economy those products are going to be sold into.  So, if you were a CEO, would you invest millions or billions into factories if you're not confident the economy is going to be there when it's up and running?

 

It's a much more complex issue than our dodo bird in DC thinks it is.

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9 minutes ago, BigRedBuster said:

You basically summed up some major problems with this.

 

a)  We are at full employment now.  We don't have the labor to have a major expansion of manufacturing right now.  Oh.....and immigration of workers is a bad idea...I guess.

 

b)  Building of factories and infrastructure isn't something that happens over night.  It takes years to accomplish.

 

c)  There is no guarantee that whatever gains are made are going to be long term.

 

d)  Some people don't like this, but we are in a global market.  Yes, the trade wars might be sort of forcing the issue of bringing jobs back to the US.  But, it's also hurting the global economy. So...in turn, it's also hurting the economy those products are going to be sold into.  So, if you were a CEO, would you invest millions or billions into factories if you're not confident the economy is going to be there when it's up and running?

 

It's a much more complex issue than our dodo bird in DC thinks it is.

 

 

He doesn't even understand the basics of trade deficit, so ya.

 

And maybe (big maybe) tariffs would be a good idea if we increased the quota of asylum seekers we accept at the southern border. In fact it would be a good idea to let a lot of them in, or give them work permits, then have companies set up manufacturing in Texas or New Mexico.

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42 minutes ago, BigRedBuster said:

WINNING!!!!

 

 

Quote

The biggest beneficiaries of that decline have been other countries in Asia where production costs are low, such as Vietnam, India, Taiwan and Malaysia. Many of those countries have recorded sharp increases in exports, although there have been allegations that some of the added traffic stemmed from goods made in China that were routed through those countries without significant alterations to avoid tariffs.

As water flows to the point of balance/levelness so does capital.  Companies are going to look for ways to reduce costs to be more competitive.  There was no assurances that they would come back to the USA unless structural changes were done here first.  

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5 hours ago, TGHusker said:

As water flows to the point of balance/levelness so does capital.  Companies are going to look for ways to reduce costs to be more competitive.  There was no assurances that they would come back to the USA unless structural changes were done here first.  

 

 

Goods can't be produced as cheaply here. One reason for that is we have stronger and better laws to protect workers. I assume we also won't work for as little money as they'll pay in those countries for the same type of work. Tariffs only work if there is no other alternative place to create the goods for the same cheap amount, or when the companies are American, having policies in place to penalize or stop them from outsourcing.

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