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Gee, more 'unexpected' growth from President Trump's economy

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Category:  News & Politics

Via:  xxjefferson51  •  9 years ago  •  20 comments

Gee, more 'unexpected' growth from President Trump's economy

LONDON (AP) — Strong U.S. jobs figures combined with progress in Britain’s talks to leave the European Union and hopes surrounding the formation of the next German government to shore up global stock markets on Friday.

KEEPING SCORE: In Europe, Britain’s FTSE 100 was up 0.7 percent to 7,370 while Germany’s DAX added 1.1 percent to 13,182. The CAC 40 of France rose 0.3 percent to 5,303. U.S. stocks were poised for solid gains at the open with Dow futures and the broader S&P 500 futures up 0.3 percent.

US JOBS: U.S. employers added a robust 228,000 jobs in November, a sign of the job market’s enduring strength in its ninth year of economic recovery. And the unemployment rate remained at a 17-year low of 4.1 percent, the Labor Department reported. The figures have reinforced expectations that the Federal Reserve will not only raise interest rates again next week and that there could be another three or four rate hikes next year too.

ANALYST TAKE: “An accompanying pick-up in wages, however, could also prove a portent of higher inflation, with taller interest rates surely on the horizon over the coming months,” said Dennis de Jong, managing director at UFX.com.

BREXIT: British Prime Minister Theresa May announced that an agreement between Britain and the European Union guarantees the rights of 3 million EU citizens in the U.K. and 1 million Britons elsewhere in the bloc. It also ensures there will be no hard border between Northern Ireland and the Republic of Ireland after Brexit. The European Union’s chief negotiator welcomed the breakthrough but said there was still work to be done.

GERMANY POLITICS: Germany’s center-left Social Democrats have agreed to open talks with Chancellor Angela Merkel’s conservatives on whether to renew their governing coalition or at least to support a minority government. Party leader Martin Schulz, Merkel’s defeated challenger in Germany’s Sept. 24 election, secured a party congress’s agreement to a motion calling for talks on “whether and in what form” the party could support a new government.

ASIA’S DAY: Japan’s benchmark Nikkei 225 index rose 1.4 percent to 22,811.08, while South Korea’s Kospi eked out a 0.1 percent gain to 2,464.00. Hong Kong’s Hang Seng rose 1.2 percent to 28,639.85 and the Shanghai Composite in mainland China added 0.6 percent to 3,289.99. Australia’s S&P/ASX 200 climbed 0.3 percent to 5,994.40.

ENERGY: Oil futures retreated. Benchmark U.S. crude climbed 89 cents to $57.58 a barrel in electronic trading on the New York Mercantile Exchange while Brent crude, the international standard, picked up 93 cents to $63.12 a barrel in London.

CURRENCIES: The euro fell 0.2 percent to $1.1751 while the dollar rose 0.2 percent to 113.34 yen.    http://www.breitbart.com/news/strong-us-jobs-figures-brexit-hopes-lift-global-stocks/


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lady in black
Professor Silent
3  lady in black    9 years ago

But GE is laying off and the coal industry is going to lose big if the tax reform (read give away to the rich) is voting in.

 
 
 
lib50
Professor Silent
4  lib50    9 years ago

We are all getting tired of the lies republicans are telling about trickle down tax cuts.  They don't work, they blow the deficit, strangle the infrastructure and force cuts to vital needs.  Look at damn Kansas.   Even businesses say it sucks.  So much more information about how bad it is.

Since Kansas enacted tax and spending cuts in 2012 and 2013, Brownback and his allies have argued that this fiscal potion would generate an explosion of economic growth. It didn’t. Overall growth and job creation in Kansas underperformed both the national economy and neighboring states. From January, 2014 (after both tax cuts passed) to April, 2017, Kansas gained only 28,000 net new non-farm jobs. By contrast, Nebraska, an economically similar state with a much smaller labor force, saw a net increase of 35,000 jobs.

The Deficit Explosion

While overall employment barely increased and economic activity was lower than other states, Kansas saw a significant increase in the number of individuals with business income.  The likely reason: That zero tax rate on pass-throughs.

The tax cuts did produce one explosion, however. The state’s budget deficit was expected to hit $280 million this year, despite major spending reductions. Kansas falls well below national averages in a wide range of public services from K-12 education to housing to police and fire protection, according to an analysis by the Urban Institute’s State and Local Finance Initiative. Under order from the state Supreme Court, the legislature has voted to increase funding for public schools by $293 million over the next two years.

The current federal fiscal scenario is reminiscent of the George W. Bush administration’s tax cuts, which included lower tax rates for dividends and capital gains and mostly benefited the wealthy. These cuts proved to be of no help when the economy entered dire straits during the 2007–08 fiscal crisis, and the Great Recession that followed. The federal government was hamstrung in 2009 and 2010 because of the size of the deficit.

There is another reason for concern over the Republican tax overhaul: It will likely exacerbate inequality of income distribution. Beyond the moral implications of widening the gap between haves and have-nots, OECD research has shown that income inequality actually hurts the overall economy. For example, Italy, the U.K., and the U.S. lost out on six to nine percentage points of economic growth over the two decades leading up to the Great Recession because of increases in income inequality. Leaving behind an entire class of consumers and potential consumers is bad for business—to say nothing of societal implications that link poverty to crime and greater risk of substance abuse .

 
 
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