Census Bureau Report on 2019 Household Income

[JayJay]

@Smyrna

@LucyLou

This is the hand that Silver Spoon Donald was dealt:

See how Donnie jumped on at the very end there in 2017? He didn’t build that. All he had to do was not tank what was handed to him. That’s all.

Like climbing a mountain my friend, each step of progress, there’s less oxygen to keep going. Every step becomes harder and harder. I believe President Obama’s greatest accomplishment, is how he made chicken salad, out of Bush’s chicken ■■■■ economy and will always give him kudos for that. Now give credit where credit is due too…and that’s how Trump kept it going…which was very tough to do.

The point being made is since this stuff is cyclical there is no data to suggest anything Trump did made a significant difference to the outcome of the cycle…i.e. that the cycle would have “collapsed” had not Trump been elected.

There’s zero evidence the corporate tax cut spurred economic growth…since the bulk of the corporate tax cuts went to stock buybacks as opposed to investment.

There is zero evidence the allowance for repatriation of funds into the US led to some marked increase in capital flows into the country.

Little evidence that any of the regulatory cuts Trump proposed led to an increase in new business activity.

Yes the economy kept growing…but the engine of future US growth…new capital expenditures…actually slowed in its growth rate after the tax cuts.

Venture capital outlays did spike in 2018, but quickly reverted to the mean in 2019.

The reason none of this happened, and why supporters of supply side still can’t understand why this happened, is because investors seek the best returns wherever they can get it.

Putting more money into their hands will not automatically result in them choosing investment activities that will spur real economic growth.

There are simply too many opportunities for them to acquire great returns via rent-seeking activities…and economic rent is a long term brake on economic growth, not a catalyst for more growth.

Until more people start understanding all the ways the wealthy can make money for themselves without actually spurring any kind of “tide that lifts all boats”, they will continue to vote for politicians whose goal is to make more and more of the pie available to the wealthy and less available to themselves.

This is why looking at other factors besides income growth…normalizing factors such as hours worked to attain that income growth, economic security surrounding that income growth, etc, are important.

If my income increased by 20% over two years, but I had to work twice as long and hard for that growth to happen as I did in the past…and if the security of future income growth is uncertain…these are not good things.

And this is what we see happening by and large in the world today…and have seen to a larger and larger degree over the past 40 years.

[JayJay]

@WuWei

It is whining. It is an external locus of control. Coveting. Envy. Greed using others as an excuse. Arrogance.

And it is ugly.

The only coveting that is going on is in the exact opposite direction.

That is what Rentier Capitalism is.

[LucyLou]

@WuWei

@LucyLou

All he had to do was not tank what was handed to him. That’s all.

Ignoring of course the deregulation and decoupling that caused the catterwailing like banshees.

The only thing government can really do to create a positive environment for business is limit itself. It is done mostly by omission, not commission.

@LucyLou

I understand.

It would appear not.

It never ceases to amaze how the petulant left throws tantrums demanding this or that, then throws tantrums about the results of getting it.

I understand.

The petulant right and the imagination that Donald built that, amazing.

And the exhaustive helicopter parenting it requires to pretend it’s still 2019?

[WuWei]

@JayJay

If my income increased by 20% over two years, but I had to work twice as long and hard for that growth to happen as I did in the past

In other words earn it. That is not what happened and you know it. They got promoted.

[once-ler]

@Smyrna

…and that’s not what’s happening so again I ask, are you a part of the problem you’re condemning but ignorant to this truth?

I have purchased from both Amazon and Walmart during the pandemic. Since I can’t come up with a good rebuttal to your point, I’ll concede. Good show.

[Smyrna]

@JayJay

The point being made is since this stuff is cyclical there is no data to suggest anything Trump did made a significant difference to the outcome of the cycle…i.e. that the cycle would have “collapsed” had not Trump been elected.

There’s zero evidence the corporate tax cut spurred economic growth…since the bulk of the corporate tax cuts went to stock buybacks as opposed to investment.

There is zero evidence the allowance for repatriation of funds into the US led to some marked increase in capital flows into the country.

Little evidence that any of the regulatory cuts Trump proposed led to an increase in new business activity.

Yes the economy kept growing…but the engine of future US growth…new capital expenditures…actually slowed in its growth rate after the tax cuts.

Venture capital outlays did spike in 2018, but quickly reverted to the mean in 2019.

The reason none of this happened, and why supporters of supply side still can’t understand why this happened, is because investors seek the best returns wherever they can get it.

Putting more money into their hands will not automatically result in them choosing investment activities that will spur real economic growth.

There are simply too many opportunities for them to acquire great returns via rent-seeking activities…and economic rent is a long term brake on economic growth, not a catalyst for more growth.

Until more people start understanding all the ways the wealthy can make money for themselves without actually spurring any kind of “tide that lifts all boats”, they will continue to vote for politicians whose goal is to make more and more of the pie available to the wealthy and less available to themselves.

This is why looking at other factors besides income growth…normalizing factors such as hours worked to attain that income growth, economic security surrounding that income growth, etc, are important.

If my income increased by 20% over two years, but I had to work twice as long and hard for that growth to happen as I did in the past…and if the security of future income growth is uncertain…these are not good things.

And this is what we see happening by and large in the world today…and have seen to a larger and larger degree over the past 40 years.

Excellent and well thought out post JayJay. Thanks and I agree with most but the positive results that happened are evidence…but maybe not proof? They definitely make the standard for the category of things that make you say, “hmmmmmmmmm”.

[JayJay]

@WuWei

@JayJay

If my income increased by 20% over two years, but I had to work twice as long and hard for that growth to happen as I did in the past

In other words earn it. That is not what happened and you know it. They got promoted.

Of course that is what has happened.

[WuWei]

No, you don’t understand. He set it up and let it happen. Omission, not commission.

The difference between the 2019 results and what will be the 2020 results are for a rare time in history, directly attributable to one single event.

The shutdown of the US economy in response to the corona virus.

“We” acceded to hysteria and panic and now must deal with the results of that decision.

[WuWei]

@JayJay

Of course that is what has happened.

No, it is not. Nobody worked twice as hard for 7.9% more.

[FreeAndClear]

The 2008 and 2001 recessions are directly attributable to one event. Some confluence but nevertheless one event

[PurpnGold]

@WuWei

The difference between the 2019 results and what will be the 2020 results are for a rare time in history, directly attributable to one single event.

Maybe.

Or maybe the economy was weak or on the verge of crumbling and the pandemic was the catalyst?

[PurpnGold]

@WuWei

Nobody worked twice as hard for 7.9% more.

That’s a bold statement cotton

[WuWei]

@FreeAndClear

The 2008 and 2001 recessions are directly attributable to one event. Some confluence but nevertheless one event

No, they are not.

[FreeAndClear]

@PurpnGold

@WuWei

The difference between the 2019 results and what will be the 2020 results are for a rare time in history, directly attributable to one single event.

Maybe.

Or maybe the economy was weak or on the verge of crumbling and the pandemic was the catalyst?

There are no more may bes. The petulant right thinks it found a sharpie and can now connect the dots. It’s easy when arguing form a position that 2017 was year 0

[Smyrna]

@WuWei

No, it is not. Nobody worked twice as hard for 7.9% more.

Going back in time, what JayJay suggested, is true IMO. Today, both the mother and father work to provide an income for the household and that fact is not what it was, when I or you were a child.

[Smyrna]

@PurpnGold

Maybe.

Or maybe the economy was weak or on the verge of crumbling and the pandemic was the catalyst?

Yeah, yeah…that’s the explanation…if you choose to ignore the facts?

[WuWei]

Or 1619.

One event. One decision.

Now we live with it.

Biden specifically and dems in general are not producers. They are unable to stay out of it. To set it up and get out of the way.

[FreeAndClear]

Conclusive conclusions are conclusive.

Both were due to bubbles. Bubbles are single events. There are confluences just like there was in 2020.

Panic is a rationalization after the fact.

[WuWei]

@Smyrna

@WuWei

No, it is not. Nobody worked twice as hard for 7.9% more.

Going back in time, what JayJay suggested, is true IMO. Today, both the mother and father work to provide an income for the household and that fact is not what it was, when I or you were a child.

Yeah, since the 70s. You think that happened in 2019?

[FreeAndClear]

@WuWei

Or 1619.

One event. One decision.

Now we live with it.

Biden specifically and dems in general are not producers. They are unable to stay out of it. To set it up and get out of the way.

Right that’s why the last two democrat presidents had to pull the country out a gop recession and did so.

See how dumb that sounds.