American Economics Thread

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victoon

Junior Member
Registered Member
Bellum_Romanum said:
A rebuttal to Lauren Chen's and Elon Musk's opinions on the need to rid of all subsidies...and the value of Federal investments that brought about the advancements in the world's economy brought forth by the spending Lauren and Elon seem to have forgotten.

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just playing devil's advocate for Musk here.

When Telsa came to existence, auto and petro industry has already received subsidies for decades. Subsiding a promising new industry made sense and was fair. But he is talking about NOW and I think getting rid of subsides might be better for the US. it will more quickly kill all the dead cats like GM and Ford instead of keeping them artificially alive. the resulting monopoly of Telsa will strengthen US position in the global market against Chinese/german/Japanese car makers. I think that could be on the mind of Musk.

SpaceX got gov contracts, not really subsidies. But I see the US is trying to spread the eggs with ULA and BlueOrigin. Again I think the US will create a bigger lead if they concentrate NASA/DOD contracts to SpaceX.

Monopoly often breed complacency. but so far there have been no evidence of that with either of Musk's companies. Of course there are risks. But I would bet (in national strategy, not stock price) on Musk's companies than their US competitors. I think China merged the two rare earth SOEs with the same line of thought, efficiency of scale, while taking small risk of reducing competition.
 
C

Chilled_k6

Junior Member
Registered Member
siegecrossbow said:
Might have to do with the rate hike.
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Rate hike comes in effect in early spring 22 (first of 3). Fed reserve also reducing bond buying recently, but I would think that should reduce growth if anything.

Andy1974 said:
No. It’s been like this since the start of Q4, I have been a bit stuck trying to figure out how they went from very low GDP at end of Q3 to immediately high GDP for Q4.
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Yes it is very odd. So Q2 growth was 6%+. Fell to 2% officially for Q3. Now bouncing back again to 7%.
 
9dashline

9dashline

Captain
Registered Member
Chilled_k6 said:
Rate hike comes in effect in early spring 22 (first of 3). Fed reserve also reducing bond buying recently, but I would think that should reduce growth if anything.



Yes it is very odd. So Q2 growth was 6%+. Fell to 2% officially for Q3. Now bouncing back again to 7%.
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US GDP numbers have no connection to reality anymore just like the US stock market.

Shelfs are empty, nowhere to go with nothing to buy. Real inflation was at least 15% this year across the board as a minimum, yet average salary increase was maybe 4%. Minimum wage the same $7.25 its been since 2009

Even the dollar store is now the 1.25 dollar store...

Its more like the US real eCONomy shrank by 6%
 
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LesAdieux

Junior Member
Andy1974 said:
No. It’s been like this since the start of Q4, I have been a bit stuck trying to figure out how they went from very low GDP at end of Q3 to immediately high GDP for Q4.
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GDPNow is a forecast which builds on further forecasts on the components of GDP, such as consumption, investment, current account deficit etc.

the largest chunk of the US GDP is consumption, which variates a lot recently. retail sales for October was a red hot 1.7%, it dropped to 0.3% in November, it seems GDPNow assumes that December will be a good month.
 
siegecrossbow

siegecrossbow

General
Staff member
Super Moderator
LesAdieux said:
GDPNow is a forecast which builds on further forecasts on the components of GDP, such as consumption, investment, current account deficit etc.

the largest chunk of the US GDP is consumption, which variates a lot recently. retail sales for October was a red hot 1.7%, it dropped to 0.3% in November, it seems GDPNow assumes that December will be a good month.
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It would. People would purchase for Christmas.
 
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