Big Government, Economics, Politics, Shmuckonomics

US GDP Revised Downward; Nowhere Near 5%

Remember the GOP tax plan requires 5% growth year-over-year to only put a $1.3t hole in the budget.

The Commerce Department on Thursday lowered its estimate for US economic growth in the third quarter as consumer spending was a little weaker than previously reported.Gross domestic product, the total value of every good and service produced in the US, was found to have grown by 3.2%, down from 3.3% in the third estimate. Personal consumption, which makes the biggest contribution to the economy’s growth, was revised down to a 2.2% increase from 2.3%.GDP remained above the 3% pace that President Donald Trump had promised for the US economy while he was campaigning. A strong fourth quarter with growth near this level will be needed to achieve 3% GDP on an annual basis, something the US economy hasn’t achieved since 2005.

5% is suddenly looking lofty.

Source: US GDP revised lower in Q3 2017 third estimate – Business Insider

Economics, Politics, Ridiculous, Shmuckonomics

Paul Ryan’s $700 A Year Savings Plan

So Paul Ryan, speaker of the House, tweeted this…

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Let’s meet Cindy, shall we?  At $30,000 she’s living paycheck to paycheck.

If we divide that massive windfall of $700 into 52 paychecks, she now makes (not takes home) an additional $13 a week.

Yeah that’s future-proofing, Mr. Ryan.

But let’s assume that this woman living paycheck to paycheck saves ALL of that $700 a year.

If she’s 25, and retires at 65, that’s 40 years of $700 a year.  That’s $28,000 in savings when she retires assuming all other things stay constant.

If she’s living paycheck to paycheck on $30,000, saves EVERY dollar of your “cut” to her taxes, and keeps saving for 40 years, she’ll not have enough to live her current paycheck to paycheck lifestyle based on inflation being where it is today.

Good plan, sir.  Good plan.

 

Shmuckonomics

CT Is Running Out Of Other Peoples’ Money

Connecticut’s state budget woes are compounding with collections from the state income tax collapsing, despite two high-end tax hikes in the past six years.  It means the current budget year, which ends in just two months, is now seriously in the red and next year’s deficit has ballooned to $2.2 billion.

It’s happening because the state of Connecticut depends too much on its wealthy residents, and wealthy residents are leaving, and the ones that are staying are making less, or are not taking their profits from the stock market until they see what happens in Washington.

It’s been ten full days since the April 18th tax filing deadline, and workers at the state tax department are still processing returns coming in the mail.

Even though about 90 percent of all Connecticut residents file electronically, many still send their checks for taxes due in the regular mail. It now looks like expected revenue from the final Income filing will be a whopping $450 million less than had been expected.

“Next year it looks like our first year budget, fiscal ’18, now instead of having a $1.7 billion deficit to address, it’s now about $2.2 billion,” said Senate President Pro tem Martin Looney (D-New Haven).

They learn the hard way or they learn the easy way, but they always learn in the end.  Eventually.

Source: Income tax revenue collapses; Malloy says taxing the rich doesn’t work | WTNH Connecticut News

Shmuckonomics

Krugman Hates Borrowing Again. All It Took Was a Trump Win.

As I always say: No true sentence has ever started with the phrase “Paul Krugman said something very smart the other day…”

In other words, 5 months after telling the world “it’s time to borrow,” suddenly the esteemed ‘economist’ says – after Trump’s election – ‘this time is different’…

And if Hillary had won, and started borrowing and deficit spending, he would be all for it.  He has no principles, just partisan allegiances.

Source: Paul Krugman Flip-Flops…Again | Zero Hedge