Economic, taxes, and tariffs discussion

[cardboardbox]

https://www.cnbc.com/2018/10/26/firs...c-product.html

Another good quarter

you know, good economic news is strictly prohibited here.

[DMT]

you know, good economic news is strictly prohibited here.

You poor victims. Amazing how you righties are always the victims! The world, perfectly represented here on RJ, is just so unfair to Trump and his supporters. If only they had control of all three fucking branches of government and a network mouthpiece they might get the fair coverage they deserve.

[Bernie Brewer]

You poor victims. Amazing how you righties are always the victims! The world, perfectly represented here on RJ, is just so unfair to Trump and his supporters. If only they had control of all three fucking branches of government and a network mouthpiece they might get the fair coverage they deserve.

I’m guessing you’re struggling with the concept of victimhood. The lefties seem to be the ones constantly complaining. But what do we know we’re just a victims of good news.

[cardboardbox]

Some good economic news lately...

Total nonfarm payroll employment rose by 250,000 in October, and the unemployment rate was unchanged at 3.7 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in health care, in manufacturing, in construction, and in transportation and warehousing.

https://www.bls.gov/news.release/pdf/empsit.pdf

Strong hiring and low unemployment are delivering U.S. workers their best pay raises in nearly a decade.

Employers shook off a September slowdown to add a robust 250,000 jobs to their payrolls in October, the Labor Department said Friday. With unemployment holding at a 49-year low and employers competing for scarce workers, wages increased 3.1% from a year earlier, the biggest year-over-year gain for average hourly earnings since 2009.

“It’s a huge milestone,” Scott Anderson, chief economist for Bank of the West, said of the wage growth. “We’ve finally gotten unemployment low enough that we’re actually getting some traction on wages and salaries. And it looks like we’re pulling more people into the labor force as wages rise.”

The share of Americans in their prime working years, between 25 and 54, who are working or looking for work rose to the highest rate since 2010 last month, at 82.3%.

https://www.wsj.com/articles/wages-r...ber-1541161920

[nots]

Some good economic news lately...

https://www.bls.gov/news.release/pdf/empsit.pdf

https://www.wsj.com/articles/wages-r...ber-1541161920

Thanks, Obama!

[chancellor]

Additionally interesting, even with the tariff risk, the fed is most likely raising rates again next quarter.

[baldgriff]

Additionally interesting, even with the tariff risk, the fed is most likely raising rates again next quarter.

While I understand that no one wants to pay higher interest rates, hasnt the raising of rates actually been a long time coming? Havent rates been artificially maintained at low rates for overly long?

Just curious on peoples thoughts.

[nots]

While I understand that no one wants to pay higher interest rates, hasnt the raising of rates actually been a long time coming? Havent rates been artificially maintained at low rates for overly long?

Just curious on peoples thoughts.

Yes, they should have been raised awhile ago. Can’t stay at this artificially low rate forever. I understand why Trump is upset, but the best way forward long term is rate increases. Trump will just have try to work around it.

[B-Fly]

Agree with baldgriff and nots.

[cardboardbox]

Yes, they should have been raised awhile ago. Can’t stay at this artificially low rate forever. I understand why Trump is upset, but the best way forward long term is rate increases. Trump will just have try to work around it.

Why were interest rates kept so low for so long? From 2012 - 2016 the economy wasnt as good as now but it was good enough I'd think to have higher interest rates than we had those year.

[cardboardbox]

Thanks, Obama!

come on, you know he's only responsible for 99% of today's economy.

[nots]

Why were interest rates kept so low for so long? From 2012 - 2016 the economy wasnt as good as now but it was good enough I'd think to have higher interest rates than we had those year.

It was a slow recovery and I guess the Fed just thought it would be too risky to raise them during that time period. In other words, probably not worth the risk of stalling the economy’s forward progress and setting it into a tailspin.
FWIW, I think we could have withstood a rate increase sooner, but I do get the political consequences to that decision as well.

[revo]

Why were interest rates kept so low for so long? From 2012 - 2016 the economy wasnt as good as now but it was good enough I'd think to have higher interest rates than we had those year.

Classic Keynesian approach: the Fed wanted to stimulate borrowing so as to spur development, and as such spending. Also, low interest rates encourages spending and investment and discourages money just sitting around.

So it's the reverse of today: great economy, low unemployment means a lot of discretionary money and spending, leading to businesses potentially charging higher prices.

The Fed is there to try and keep the balance, and not just give a boost to the president because it's election time. And no, Trump isn't the first president to be upset at the Fed raising rates, but he is the first to be so public about it.

[Bernie Brewer]

Classic Keynesian approach: the Fed wanted to stimulate borrowing so as to spur development, and as such spending. Also, low interest rates encourages spending and investment and discourages money just sitting around.

As a Banker, I agree with this post. The Fed Chairperson is usually pretty independent from the President, once appointed and the Board of Governors really don't pay much attention to what the political party in power "wants." They do what they think is best for the economy.

[chancellor]

As a Banker, I agree with this post. The Fed Chairperson is usually pretty independent from the President, once appointed and the Board of Governors really don't pay much attention to what the political party in power "wants." They do what they think is best for the economy.

Is the Fed point of view still to attack/control inflation first? It appears that way to me, but you're a lot closer to that than I am.