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scenefromtheleft

 

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Maria
 

what is trump doing to our economy and people now?

Added: Saturday, August 3rd 2019 at 1:02am by scenefromtheleft
Related Tags: economy, trump, money
 
 
 

Now, I have to admit that the economy is not something I understand that well.  However, I do know enough to know that no country can be forced to buy products if they won't want to.  I also know that putting tariffs on another country's products will almost certainly be replicated.  So when trump says he is going to put tariffs on Chinese products, we will likely get a double whammy out of it.....and not in a good way.

American consumers will end up paying more for Chinese manufactured products because tariffs are always passed on to the consumer.  The country of origin does not pay those tariffs.  The price of the product goes up to include the charge so we will pay more at the store.  Secondly, China is almost certainly going to reciplocate and those businesses in America that sell to China are going to be hit with tariffs also, and will pass it on to their end users, which means our products are less likely to sell in China.

That is NOT good news for our farmers and/or manufacturers. Not at all, in that a sizable market will be made a lot smaller.

Then the Federal Reserve has lowered the interest rate for loans. Now this is usually done when the economy is sluggish in order to get things started up.  However, trump is angry because the Fed only lowered it by about 1/2 of 1 percent.  If the economy is doing so well, truly, then why is this the time to lower it.

Now going back to my lack of expertise in economics, I have to note that one of these articles referrs to what was done by the Fed as weakening the dollar.  If that is true, then I am made nervous by this.  That sounds to me like we are saying the dollar is, in some sense, not doing as well as foreign currency and yet the dollar is usually the standard for trade.  This seems to me to bode not well.

On this particular point, a friendly economics savvy person is welcome to correct me, but it sounds like a weakened/devalued dollar is a bad thing.  It seems to me that it weakens us in the eyes of the world and as a result sideliines us in some important ways in terms of trade.

if anything else trump had come up with economically had seemed to help the "people on the ground" like the farmers and the poor, I might be more comfortable, but like with the so called tax reform, the people that benefit are the rich with the rest of us at best breaking even, and in some cases ending up worse off. 

While it is true that the economy is far from being the most important issue in my mind, I want economic policies that actually help "we the people" and not just the super-rich which is what I fear this will end up doing, just like the "tax reform" did. Or then again, maybe it won't even help them.

http://www.nytimes.com/2019/08/01/us/politics/trump-tariffs-china.html

http://www.politico.com/story/2019/07/31/fed-cuts-rates-amid-global-slowdown-1442621

http://www.npr.org/2019/08/01/747302797/trump-ratchets-up-u-s-china-trade-war-with-more-tariffs-stocks-slide

User Comments

trump throwing more tantrums, how much damage is this latest gonna do?

one of trump's campaign promises was to reduce the debt and deficit within his term of office (he thinks he will have two) but he has done nothing to make this happen and in fact the only legislation he managed to to get passed is a tax cut that favors the super wealthy people and huge corporations, the ones needing any financial reform or assistance the least. The GOP have completely abandoned their "fiscal conservatism" and have ignored the ballooning debt and deficit under the current administration. Once again the Republicans will be leaving a mess for the Dems to fix when it comes to the economy.

U.S.   National Debt Hits Record $22 Trillion Federal  deficits   are now expected to average $1.2 trillion, or 4.4 percent of gross domestic product — far higher than the average over the past 50 years.  U.S.   National Debt Hits Record $22 Trillion. Feb 13, 2019

Maria you have hit this one right on the head!!!!!{#apploud.gif}{#apploud.gif}{#apploud.gif}

No self respecting Republican would have accepted those numbers 6 years ago!

They are totally avoiding thinking or talking about it now. Remember what they did to Obama when he was trying to fix the mess Bush left him with? It is so frustrating!!!...{#basic-angry.gif} {#basic-angry.gif} {#basic-angry.gif} {#basic-angry.gif}

Its actually worse than that Maria....the are encouraging it!!{#basic-mouth-shut.gif}{#basic-mouth-shut.gif}

Mitch McConnell is blaming the blow-out of the debt to Social Security, Medicare and Medicaid, not the tax breaks for the rich.  It really infuriates me!!

 

What!!!!  I missed that one!!  But Moscow Mitch has been so off base lately that nothing he says anymore amazes me!{#basic-cool.gif}

Maria, this is part of what I find so astonishing....they reviled Obama for 8 ye4rs because of the deficit....a progression that started at least under W and yet moved to make it worse under trump.  The irony is amazing.

Moscow Mitch is as corrupt as they come and all his BS about fighting against Russia all his life in the Senate is exactly that...BS!!!

The moscow mitch nickname is catching on, even Amod used it below...LOL

and turtle head mitch is crying about it.....boohoo...lol.

Yeah, I am so sowwy for the turtle.

To simply state things SFTL....Interest rates are normally lowered when there is a need to stimulate the economy!  If the economy is the best in history why does it need to be stimulated more?

The FED lowered rates in one specific area to hinge against future dips, in short the FED did not want to find itself in a position where things got out of hand so quickly that any action by they would have little if any effect (circa 2008).

It also means that money is easier to borrow when the interest rates are so low.  Businesses borrow more money, they expand their businesses and as a result tend to hire more people or increase wages because they a flush with more new capital.  Problem is that when you are at or near full employment like we are....there is no one to hire and if you borrow money to increase the pay of your employee's what happens if and when there is an economic down turn....you don't lower wages, you shed employee's faster!

Now let's get to one more shameful fact.....you have to borrow this money that you are paying the Farmers because of you Trade War and Tariff's.  That is because anyone with commend sense knows that Tariffs do not bring money into your Treasury....they taxe your consumers.  You need to get the money for the Farmers from somewhere....you borrow it! {#basic-laugh.gif}

Wow, in other words, this move is likely going to ADD to the debt instead of reduce it.  Again neither very traditionally republican nor in the long run good for the workers.  A potential loss for us all.

Amod, didn’t they lower interest rates the last time before the market crashed ! The vet is also not a government institution or anyone reading this that doesn’t know it’s private and that’s never good

I think that might just be a good thing, because hey are free to disagree with the dictates of "he who wants to always be obeyed"  and not weaken the dollar more than they see as necessary or prudent.

At this point I would trust the Fed Reserve before I would this administration.

You might find this an interesting read. If that is only for that one percent of the population and it is to crush the other 99 and it’s doing it slowly. Stay over a lead against the poor. https://www.thenation.com/article/why-federal-reserve-needs-overhaul/

Whether the Federal Reserve is the best mode or not for handling our financial situation, it can do no more harm than an out of control person in the white house can with their attacks on everybody and anybody, and wish to be in total control of everything.

I am just glad that there are people not giving in to trump's many attempts to make the country over in his image, whether that be the rampant racism or the destablisation of the world stage with tariffs and nasty tweets.

The Fed has existed far longer than what I consider our most urgent emergeny in this country.  We can deal with IT, after we get that threat handled. In 2020 if not sooner!!!!

Lol I meant the FED Reserve, not vet

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