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ECONOMY

AS OF 2019

 

  • Tariffs are properly called “import taxes” and are paid by individuals and corporations as part of the price of goods. Money is not paid to the government. 8/18/19 – “The New York Federal Reserve Bank estimates that, to date, the administration’s tariff policy has cost the median earner $831 per year, nearly offsetting the $930 per year benefit from the 2017 tax cut. In the long term, tariffs raise costs for U.S. businesses and consumers, eroding our competitive advantage.”

  • There are signs of recession -- manufacturing dip, inverted yield curve, use of low interest rated to "goose" the economy

  • Continued use of low interest rates during a strong economy means that this "tool" cannot be used during a recession

  • Tax cuts benefited corporations and the top 10%. The tax cuts were paid for by deficit spending that is larger than predicted. There was no trickle down.

  • Individual tax cuts will expire. Corporate tax cuts will not.

  • Tax cuts were used by corporations to buy back stock while there are limited results of investing those gains into the US economy beyond already planned expansion

  • The US economic growth is roughly the same as it was during the Obama administration

  • Job creation is roughly the same as during the Obama administration.

  • The average unemployment rate is lower

  • Farmers -- Losing the world’s most populous country as an export market has been a major blow to the agriculture industry. Total American agricultural exports to China were $24 billion in 2014 and fell to $9.1 billion last year, . Exports of farm products to China fell by $1.3 billion in the first half of the year, the agriculture group said this month.

  • Farmers are receiving a bailout from the Trump administration larger than the GM bailout and are not required to pay it back

  • Canadian wheat exports to China have “rocketed” this year, while exports from the United States have plunged. Potentially losing long term markets for agricultural products.

  • The Trump Economy in 15 charts