he is essentially raising the tax on the poor
American Economics Thread
- Thread starter Bernard
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Yeah no. Industrial production of high volume low unit cost products is automated or outsourced. But that was never the question nor what they are worried about from China.
Industrial production of low volume high unit cost products like reactors, power plants, trains, aircraft, etc is still quite manual. And China dominates on that too while they don't.
More worryingly for them is how China has transformed artisan production to industrial production.
Still fairer than 98% of corporate layoffs.
Literal brain rot. At some point you have to wonder where this persons motivations come from?
2 years later why doesn't government services work like they used to do....
People love bringing up Twitter as an example of it working... (because it didn't crash!)
But they had to hire back some of the senior engineers on much greater salaries.
Since those people are the ones that can troubleshoot and fix stuff if shit breaks down.
Turns out a buzzsaw doesn't help preserve institutional knowledge.
I, for one, welcome our new government-lobotomizing overlords.
Jokes aside, it's a real shame that they'll probably axe the National Park Service first, I really like some of the parks. Not knowledgeable on the internal bureaucracy to know what else they'll end up doing.
Jokes aside, it's a real shame that they'll probably axe the National Park Service first, I really like some of the parks. Not knowledgeable on the internal bureaucracy to know what else they'll end up doing.
Nothing will break except a very small recession.
If you look at data such as job creation, investment, and the various aggregate data from the US economy, the US government is a substantial part of Joe Biden’s "booming" economy.
The monthly employment number includes an astonishing 43,000 new government jobs each month. Furthermore, the only factor that continued to grow uncontrollably was the number of government jobs, adding 40,000 new positions for a grand total of just 12,000 jobs. It’s no wonder that the labor force participation rate and employment-to-population ratios remain below 2019 levels.
Furthermore, in the latest GDP number, government spending accounted for 30% of annualized growth, while investment was essentially flat. Over the past nine quarters, government spending has been a major driver of GDP growth, and its contribution to GDP in the third quarter of 2024 was the largest in a year.
Stop and think, what about the expanding private sector???
Wrong. All of the labor force growth in the last four years has come from foreign workers. The latest jobs number is so bad that it seems disingenuous to blame hurricanes and strikes, as if economists and analysts hadn't factored those two factors into their estimates.
The Harris-Biden administration came into office in January 2021, just as the economy was recovering strongly. Instead of allowing the private sector to thrive, he embarked on a strategy of reckless spending and tax increases with two goals: to increase the size of government in the economy so much that the next administration would not be able to reduce it enough in four years. The second goal was to inflate growth and employment numbers so aggressively that the next administration would see a recession if it reduced public sector growth. You might wonder why they would do this if Harris was going to win the election. If Kamala Harris wins, she will continue to expand the size of government, inflate prices through spending and printing, and blame corporations and stores for these actions.
The Biden-Harris administration has left a huge time bomb for Trump and Elon Musk’s DOGE. It will be nearly impossible to avoid a recession if they cut discretionary spending and eliminate duplicative jobs.
It will be both entertaining and comical at the same time. The good news for Americans is that an eventual recovery of the public finances and reduction of government jobs may have a temporary negative impact on GDP, but increased exports, investment and private sector employment will likely offset this, and the outcome will be better for the US dollar and the American people. The potential of the private sector of the US economy is far greater than the short-term negative impact of efficiency and budgetary control on core GDP. We will see how Trump manages this bomb in the Oval Office.
In my opinion, DOGE will do much less than he has been publicly advocating and claiming. Just as an example, the cabinet appointments leave no doubt that the basis of the US government will remain, for example, if they really wanted to reduce spending, the DHS and so many other federal agencies should have been closed.
To be honest, the administration is crap. Just like the United States Forest Service. Francis Fukuyama himself had already warned about this ten years ago, the decline in the administration of such federal agencies:
The problem is that it is not just that. Inefficient administration ends up condemning the country's own economic growth and development.
Just to give you an idea, for every 1% increase in the yield of the US federal government's asset portfolio, total taxes could be reduced by 4%.