Winning Redux 2
I have already written a post about this a couple of weeks ago, but I have lately been reading more articles on the topic of the impact of the tax cut along with the reasoning on how the trade war will play out.
Hey, do you feel like you are winning now?
Tax cuts: The originally story line provided by the Republicans for the tax cuts was that tax cuts would lead to greater investments, and thence leading to improved productivity and returns, and then finally rising wages for all. However, there’s a flaw in that reasoning – increased productivity no longer leads to increased wages for workers. That economic connection has been cut sometime during the 21st century and instead the productive gains have all gone to the owners and shareholders. And now the tax cuts, again and again and again and again in the news media, all the corporations have done with the tax cuts is do stock buybacks. Six months after the tax cuts, corporations are doing stock buybacks instead of investments.
Are you feeling the winning vibe?
And now we have pending trade wars…with just about everybody in the world!
The current analysis has been that the American consumer will be hurt with increased prices, inflation and job loss. The ones hurt the most will be those in the red states supporting Trump because the retaliation is a calculated response geared to hurt the Trump voters in the hopes that Trump will fear losing his base. Hurt the base, lose the vote and Trump is out. At least that is the theory.
Unfortunately, the latest news seem to indicate the base are burrowing in deeper and still holding the faith. They are holding for now despite the pain. At what level of pain do they have to have before they waver and break away? At what point will they wake up and say, “Hey, this isn’t what I wanted.”
Hey, are you winning yet?
The articles to read and weep:
Corporations Invested Their Tax Cuts Into Stock Buybacks That Didn't Even Work
