U.S. economy slows as consumer spending brakes sharply

[mentalfloss]

The opposite effect of what tax cuts are purported to do.

Shocking.


U.S. economy slows as consumer spending brakes sharply

The U.S. economy slowed in the first quarter as consumer spending grew at its weakest pace in nearly five years, but the setback is likely temporary against the backdrop of a tightening labor market and large fiscal stimulus.

Gross domestic product increased at a 2.3 percent annual rate, the Commerce Department said in its snapshot of first-quarter GDP on Friday, also held back by a moderation in business spending on equipment and investment in homebuilding.

The economy grew at a 2.9 percent pace in the fourth quarter. Economists polled by Reuters had forecast output rising at a 2.0 percent rate in the January-March period.

https://www.theglobeandmail.com/bus...my-slows-as-consumer-spending-brakes-sharply/

 

[Twin_Moose]

So the economy slowed but outperformed the economists estimates by almost a full point which is it slowed or outperforming?

 

[petros]

2.2 is average.

 

[White_Unifier]

Reducing taxes, at least taken in isolation, does benefit the economy. Increasing government spending, likewise taken in isolation, can benefit the economy.

The problem of course is how all of these interact with one another. Trump's protectionist rhetoric is probably making businesses nervous. This causes them to anticipate higher costs resulting from higher tariffs, reduced economies of scale, or a combination of these. This could result in reductions in business investment across the board as US businesses wait to see what will come out of the Trump administration.

Had Trump not lowered taxes and increases spending, things would probably have been worse, but of course Trump's policies aren't sustainable over the long term.

 

[mentalfloss]

2.2 is average.

Cutting corporate taxes in half should have been a huge boost regardless of the time of year.

Clearly, the cut didn't lead to a significant spending increase because employees were given just enough to afford a fukking cup of coffee.

 

[petros]

Cutting corporate taxes in half should have been a huge boost regardless of the time of year.

Clearly, the cut didn't lead to a significant spending increase because employees were given just enough to afford a fukking cup of coffee.

Let's do a little math. 4th quarter was 2.9 1st Quarter 2.0

2.9+2.0=4.9÷2=2.45.

Is that above or below the 2.2 average?

 

[petros]

screeeeech

 

[Danbones]

Thread meet wall.

Jeez you couldn't have messed up a thread this much even if you had typed in a whole Youtube page address.

 

[darkbeaver]

Cutting corporate taxes in half should have been a huge boost regardless of the time of year.

Clearly, the cut didn't lead to a significant spending increase because employees were given just enough to afford a fukking cup of coffee.

So the real reason for cutting coporate taxes should be explored.

 

[mentalfloss]

screeeeech

Shitty averages are still shitty.

So the real reason for cutting coporate taxes should be explored.

Check out a CEOs pockets and you'll find your answer.

 

[petros]

Above average averages are shitty?

You're f-cked.

 

[captain morgan]

Above average averages are shitty?

You're f-cked.

I wonder how the Ontario economy is doing?

 

[petros]

What Ontario economy?

 

[captain morgan]

The two healthy sectors of the Ontario economy are the increasing-taxes sector and the take-on-ridiculous-amounts-of-debt industry

 

[White_Unifier]

The two healthy sectors of the Ontario economy are the increasing-taxes sector and the take-on-ridiculous-amounts-of-debt industry

And don't forget the black market.

 

[darkbeaver]

My spending of the paper has increased to avoid the eventual devaluation/inflation. I convert my cash stream into hardware,tangables right away cuz someday soon that fukkin paper will be easily gotten by the barrow full and usefull for rollin joints and nothing else.

 

[captain morgan]

Real estate and precious metals are a strong way to go in these times.

 

[petros]

Or a USD bank account.

 

[captain morgan]

Currency FX is a weird game these days

 

[petros]

As long as Trudeau is in. You can't lose with a USD account.