The economy is "healthy" at a superficial level. Like the article I pointed out stated, consumer debt is at a level it was right before the great recession in 2008. Average household income isn't rising at a level where that consumer debt increase rate is sustainable. We were seeing similar levels of gdp growth before the 2008 recession. From 2004-2007, GDP growth was hovering between 2-4%. The same as now.
This is a lie. The economy has an unemployment rate of at least 20% under Obama. It is now near 0% under Trump, when you don't consider people looking for a job. Plus, our deficit is highest ever thanks to our lowest tax rate ever for the people that matter, both of which drive the greatest economy ever. We are looking at historic performance, the kind that none have ever witnessed in history. Believe me.
bankrupt our nation? Tell me since the economy is running so hot why is the deficit over a trillion dollars. If you can’t reduce the deficit when the economy is where it is at when can you? Trump’s economic policy is going to bankrupt the nation. Tax cuts to the rich corporations. How does that benefit the long term Stability of the nation?
what? The housing bubble collapsed right when Obama took over and he was put in charge of fixing it. He took over a mess. Unemployment was not at 20% when Trump took over. Why are you lying?
meaningless rhetoric. so what is your point? clearly u haven't been following the economy. thus far, in 2019, the stars of the US economy, not CapEx, not mfg, have been the consumers a few weeks ago, Fed Chair indicated that lower interest rate in the immediate future; that coupled w the dovish sentiment thru out the major central banks run counter to the assertion that it is not sustainable
oh lol should have known when he said the deficit was highest ever because of the tax cuts that matter for the important people lol
Consumer debt isn't a meaningless rhetoric. Just hold on to your butts because we are in for repeating the same mistakes because there isn't an adult in the room between our adminstration, Congress and shareholder class who cares about 10-20 years down the future. I suggest you read this article https://www.americanbanker.com/news/consumer-debt-is-at-an-all-time-high-should-banks-be-worried. Americans are going to be less prepared when the next recession hits. In summary: "In a gloomier future, U.S. consumers will continue to borrow freely even as rates climb. The ability to make their debt payments will erode with time, which will leave them vulnerable to the next economic shock. And then the same cycle that has unfolded over the last decade will begin again."
What part of this economy sustainable? What happens when you can no longer cut interest rates? What happens when the economy goes on the downturn? What mechanisms are in place to battle a downturn? What Trump and the GOP did was stupid and short sited.
i notice that u've conveniently omitted the "kept at an artificial level" part , the meaningless part of the verbiage that u had cut n paste from the article that was submitted by an industry lobbying group https://www.americanbanker.com/news/consumer-debt-is-at-an-all-time-high-should-banks-be-worried. that purports to talk about the sustainability of consumer debt without any mentioning of the interest rate environment in the US as well as globally. to say that the article is a one-sided con job would be a gross under-statement
the prevailing dovish interest rate environment, domestically and globally, bodes well for the consumers. the Fed is an independent body. it makes its decision based on economic data. based on last several qtr of econ data, there will be at least 2 or 3 cuts in 2020. coupled that w the moves / statements by other central banks (EU, China, Japan, etc,), we re in dovish territory, ditto for 2020
Like I said this economic growth is not sustainable. When a downturn happens and the interest rate are next to zero. What mechanism are to battle a recession or downturn? Since the tools in the chests were already used. When the debt is over a trillion dollars. What then? We are living on borrowed time. The gop and trump has positioned the US in a terrible position moving forward. Like I said not sustainable
based on what economic data / reasoning ? ???? earth to Alek, u do understand that economic tools can be used again and again, no ? to rescue the US economy from the Great Depression, FDR used a combination of fiscal and monetary policies . W tried to followed the same course of corrective action, except he failed at it. w the mess left by W, Obama also used a combination of fiscal and monetary policies, he succeeded.
Based on every economic cycle that has occurred. Or are you saying there won’t be a downturn or worse in the future? Cutting interests rate to stimulate economic growth is a tool during those times. But coupled with tax cuts when the economic already growing at 3 percent is dangerous and short sited. Those are the things you do when the economy is on the downturn. That with increased spending at the same is dangerous. So yes not sustainable
ROFLMAO an non-economistl pretending to be an economist the only thing u know about economics is that u don't get it
I am Not pretending to be anything. But nice reply. Funny you don’t reply to the actual message but attack me
Hey man... You might have a PhD in economics but you aren't helping your cause here by insulting people who you deem as less knowledgeable. You have to explain with some nuance instead of insulting why consumer debt being at the levels of the pre-2008 crash with average household income only increases 1-3% with respect to inflation isn't worrisome along with the federal deficit skyrocketing during sustained gdp growth. I'm willing to learn. You are going to have to be more willing to discuss rather than insult if you want to inform with the knowledge you have.
Yes Obama and FDR used both during a recession. Trump is using both now during a hot economy. So that why I said about using tools in the chest. Those tools are weaker Now because of the tax cuts and rates that already occurred. What can used when substantial tax cuts and rates already done? When the debt is already at a trillion dollars. How effective can those tools be then? P.S. I don’t need that earth to Aleks. Don’t be an *******
Once again the dumbass brigade can't defend Trump or his actions so try to deflect to their hatred of Obama or Clinton. Wash rinse repeat. DD
