patrick.net

Sounds like MAGA is our only hope!
Go Cheeto Jesus!

The slow recovery is finally over, and we have beautiful quarterly 3%+ GDP growth, something we've been told for years was impossible in such a developed economy.

TwoScoopsMcGee says

The slow recovery is finally over, and we have beautiful quarterly 3%+ GDP growth, something we've been told for years was impossible in such a developed economy.

Impossible for a socialist running the country. Easy for a capitalist running the country.
It's amazing what a little incentive can do.

Strategist says

Easy for a capitalist running the country.

... by pouring trillions of borrowed money into the places where it changes the littlest.
Great capitalism.

anonymous says

We have a shortage of aggregate demand, and only public spending and raising wages will change that.

Why "only"? Needs to be defended, not just thrown out there as some kind of axiom.

1- companies are not going to spend unless they need extra capacity. Which clearly they don't. They do what they are supposed to: earn cash returning it to shareholders with a profit.

2 - personal saving rate and even national saving rate is pathetically low. The problem is certainly NOT high saving rate in the US.
3 - Talking of "glut of saving" doesn't make sense unless you make it clear that it is a globalization phenomenon, which China, a huge economy, saving half of what it receives. This is the problem. This is why there is a deficit of demand. Unless you make this clear you are unlikely to propose a good solution.

Having stated the problem it should be clear that any increase spending in the US based on debts (tax cuts or gov spending), taken in isolation will do just one thing: increase the account deficit, most likely in the form of an increased trade deficit.

i.e. every new debt in the US just feeds the China money black hole.

Thus the only solutions are:
1 - get China to spend more
2 - slap enough tariffs on imports to kill the deficit, force work to be done in the US, force labor shortage and higher wages. At the price of higher prices and probably a new period of stagflation .

Otherwise the BEST option is slow growth and shrinking deficits. But tell that to republicans.

TwoScoopsPlissken says

The slow recovery is finally over, and we have beautiful quarterly 3%+ GDP growth, something we've been told for years was impossible in such a developed economy.

I believe Obama had 8+ quarters of over 3% GDP growth. The problem is comparing an annual rate vs quarterly rates, which is what some people will do to puff themselves up because they are feeling pretty insecure and way in over their heads.

Rew says

I believe Obama had 8+ quarters of over 3% GDP growth.

That would be wrong, plus he never had two consecutive quarters of 3%+ growth.

anon
That would be wrong, plus he never had two consecutive quarters of 3%+ growth.



There is 8, with 2 consecutive

Rew says

Nice unsourced chart, amazing what you can do on MS Paint.

Heraclitusstudent says

i.e. every new debt in the US just feeds the China money black hole.

Thus the only solutions are:
1 - get China to spend more

It's normal for third world countries to save more of their disposable income. They have seen life in the past, where not having saved enough when the hard times come can result in starvation. It will change over time with the newer generations.

anon_476ae says

unsourced

Didn't find one that proves your affirmation then? Reality is hard for the Trumpets, I know.

If only there was some search you could do to find the historical quarterly GDP rates for the US?

And yes, I have an answer for your most obvious objection.

TwoScoopsPlissken says

Gone up like a rocket. Thank You Trump for increasing our 401K's.
If Bernie was President the stocks would crashed.

Strategist says

Gone up like a rocket.

To the moon, Alice!!!