An economic story for the ages

 

From Drudge, with these as the sidebars:

 

One can support the Democrats and oppose Trump only if one believes in voting for a living and not the desire to live freely. It is not tax cuts as such that matter, but that the onus for growth is now being placed on the private sector. Over time, the proportion of the economy directed by government will recede along with the regulations that have slowed and in many places stopped productive growth.

The pressures it will place on others will be through the power of example rather than that the US will grow to anyone else’s detriment so others will be forced to match these policies or see their economies shrivel. Everyone will grow, but some more rapidly than others. This is how it’s done. No matter how much anyone else produces, whatever anyone else add themselves will make their own economy more prosperous.

That is, Keynesian economics is dead, at least for now.

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49 Responses to An economic story for the ages

  1. John Comnenus

    Abbott will now see in he USA what he could have achieved as PM if only he stuck to his election commitments to lower regulation, control government spending and cut taxes. Instead Abbott listened to destructive idiots like his senior public servants.

    Trump is showing us in real time that the public servants serve themselves first, the political masters next and the public last. Trump is a phenomena and is going to get much lower unemployment, higher wages, more tax revenue and much higher economic growth. And in Australia the Libs will either join the Trump revolution or be destroyed.

    Trump is the greatest politician in the world today, and perhaps the greatest in a generation.

  2. zyconoclast

    Abbott will now see in he USA what he could have achieved as PM if only he stuck to his election commitments to lower regulation, control government spending and cut taxes. Instead Abbott listened to destructive idiots like his senior public servants.

    Abbott is a bog spending socialist. All ways has been. He wont learn a thing.

  3. Tel

    Over time, the proportion of the economy directed by government will recede along with the regulations that have slowed and in many places stopped productive growth.

    Maybe.

    President Reagan promised the same thing, and government continued to grow.

    Prime Minister Howard promised much the same, and look at the size of our government. Australian government spending is 40% of the national GDP.

  4. Rabz

    Over time, the proportion of the economy directed by government will recede along with the regulations that have slowed and in many places stopped productive growth.

    Until the next dumbocrat dunderhead snows the electorate with the latest socialist snake oil, or the rethuglicans saddle themselves with a RINO dredged out of the swamp.

    Fatty Trump is a one off.

  5. entropy

    That is, Keynesian economics is dead, at least for now.

    Hahhahahaha! If only that were true. Unfortunately, Keynes created a model that allowed politicians to do what they want to do. These tax cuts wont be the solution to that particular vampire policy. Voters are Lucy Westrena.

    It’s very hard to kill vampires, and to mix the metaphor but keep it within literature, you are the omega man, Steve.

  6. Tel

    These guys list Australian government spending to GDP at 36%.

    https://tradingeconomics.com/australia/government-spending-to-gdp

    It was falling up to 2007, then turned around and is on the way up again. Not disastrous yet, but heading that way. Let’s not forget things like NBN being kept “off budget” as well.

  7. RobK

    That is, Keynesian economics is dead, at least for now.

    …..and on that note: Merry Christmas Everyone!

  8. struth

    The pressures it will place on others will be through the power of example rather than that the US will grow to anyone else’s detriment so others will be forced to match these policies or see their economies shrivel. Everyone will grow, but some more rapidly than others. This is how it’s done

    What drugs are you on?

    Do I really have to explain the fallacy of this?

    Socialism doubles down and eventually starts killing people they wish to blame for their own sheer aggressive campaign NOT to follow such policies.

    USA’s success won’t help Venezuela one bit.
    And for exactly the same reasons it won’t do any good for Australia.

    You are using some stupid notion that our pollies don’t know any different and that Trump is showing them a way they never considered.
    Really?
    FMD.
    Do you think the pollies in power at the moment give a tinker’s about the economy.
    Remember, the only thing on Waffleworth’s mind the very minute Trump was elected was to come out strongly pushing that we won’t be torn away from the Paris Agreement etc.
    Very telling.
    That’s his foremost concern.
    These C…ts are U.N. bought and paid for human excrement.
    The only care they have for our economy is to make sure it is ruined by 2030 (agenda).
    These people are importing terrorists to kill us and shutting down our power supply and industry and you think they are going to turn around and go, Gee, have a look at what Trump is doing, it seems to be working, we better give it a shot.

    Naivety will be our death.

  9. md

    Meanwhile, in socialist Australia, governments use the ponzi scheme of mass immigration to deceive people into believing all is well:
    https://www.macrobusiness.com.au/2017/06/victoria-is-a-rat-on-the-turbocharged-immigration-treadmill/

  10. nerblnob

    Heh. BBC news Washington correspondent tonight concedes that ‘economy booming, tax cuts in place, regulations being torn up – Trump is sort of doing what he’d said he would do.’

  11. Fat Tony

    struth
    #2589792, posted on December 21, 2017 at 9:05 am

    +1,000

  12. H B Bear

    He is the Orange Messiah. All praise The Donald.

  13. I’m not as optimistic as Kates regarding the example the US will set with it’s reformation of the economy.
    The key will be Great Britain. Just like in the Reagan years, Ronald would not have been able to achieve near as much if Thatcher wasn’t also at the UK. Think of it like a pincer movement.
    I seem to recall even a rabid union leader and hard core Labor politician (Hawke & Keating) had no choice but to follow the example of Reagen and Thatcher.

    I think the Keynesians will wait it out for as long as they can. Any economic hardships suffered by the Socialists and Fascists of Europe will be blamed on Trump. If their populations start to whinge and whine for economic reform, elections will be rigged when and where necessary to keep the reformers out until Trump leaves office.
    Only if Britain can tear itself away from Europe (doubtful) is there the slightest chance that the Socialists and Fascists of Europe might be defeated.

    The other hope is Japan. Trump seems to have a great relationship with Abe. If the US can carry Japan in its economic wake before Abe leaves office, they too may reform which will make it harder for the Socialists and Fascists to resist.

  14. Tim Neilson

    struth
    #2589792, posted on December 21, 2017 at 9:05 am

    Depressing, but fair comment.

    The ABC and Fairfax will blame America’s success on “unfairness”, and there will always be drug addled sociopathic parasitical wastes of space living in self-induced “poverty” who can be showcased to “prove” that Trump is Satan’s evil twin brother.

    I’m not totally without hope, but it’s a long hard and uncertain road ahead, with no guarantee of success. And we’ll have to go down before we can start heading up – the Peanut Head grievance industry/corruptocrat shakedown cartel superseding the Michael Trumble Election Winning Machine is the pain we have to face in the hope that a non-catastrophic political group will emerge and develop some momentum.

  15. JohnA

    entropy #2589762, posted on December 21, 2017 at 8:30 am

    That is, Keynesian economics is dead, at least for now.

    Hahhahahaha! If only that were true. Unfortunately, Keynes created a model that allowed politicians to do what they want to do.

    And there is the very reason that Keynesian economics is dead. It always has been, and everywhere its effects have been cancerous and deadly.

  16. Hydra

    Over 500,000 employees in the US lower and middle classes have now received either a bonus or instant pay increase.

  17. John Constantine

    The Trumpnado cuts taxes to get America moving.

    In their godless commo melbournibad, they cut speed limits to raise speeding revenue and slow the proles down.

  18. MPH

    Do let us know when the Green Card system has changed to a merit based criteria would you, Cats?

  19. Ez

    Let’s not forget things like NBN being kept “off budget” as well.

    Or accelerating costs of the NDIS:

    The cost of the NDIS will increase substantially over the next four years while it is progressively introduced: from around $4.2 billion in 2016–17 to $21.5 billion in 2019–20—representing an increase in spending to around 1.1 per cent of GDP.

  20. EvilElvis

    Prime Minister Howard promised much the same, and look at the size of our government. Australian government spending is 40% of the national GDP.

    It was falling up to 2007, then turned around and is on the way up again.

    Fuck me drunk, read what you write Tel…

  21. RAZOR

    Inherent private sector job creation is the only answer to the large number in the welfare state who will always vote for bigger Govt parties when basic jobs ( retail, service etc) are scarce. They are likely to go for a job when the income differential – welfare to work – is large enough. They are likely to switch party when they have entered onto an apparent secure future pathway.

  22. Roger

    These guys list Australian government spending to GDP at 36%.

    26.6% is the last official figure from the 2017 budget compared with the US at 36%.

    Mind you, given the demographic pressures on social welfare, the largest single area of expenditure, we’re heading to similar gov’t expenditure within our life times.

  23. Habib

    Meanwhile in this backed-up dunny, the treasurer was having a whine about the pitiful tax cuts being held up by that naughty Peanut Head, then announced the ACCC will be empowered to look at fuel prices. More guvvmit, that’ll fix it!

    Blithely ignoring the obvious fact to anyone with an IQ above room temperature that guvvmit is the biggest factor in the astronomical price of fuel in said dunny. We can’t even throw these fuckers out of helicopters, we can’t afford the avtur.

  24. OneWorldGovernment

    Baa Humbug
    #2589845, posted on December 21, 2017 at 10:00 am

    I’m not as optimistic as Kates regarding the example the US will set with it’s reformation of the economy.
    The key will be Great Britain.

    I can’t wait to see Poland and Hungary absolutely blow the shit out of the likes of the filth called germany and france.

    And I hope they waste foul places like Belgium whom created the Congo.

    I have no sympathy for the atrocious places.

    I have already said it but I will fight with Hungary against the eu pricks and will support Poland.

  25. Motelier

    We really need to become the 51st state.

  26. OldOzzie

    HEY, HOW ABOUT THAT? AT&T is giving $1,000 bonuses to 200,000 employees after tax bill.

    Plus: Boeing CEO Dennis Muilenburg unveils $300M in initiatives in response to tax bill.

    And: Wells Fargo, Fifth Third Bancorp unveil minimum wage hikes after tax bill passage.

    UPDATE: Instant Boom: Five American Businesses Announce Major Bonuses For Employees Because Of Trump Tax Reform. “Five American businesses announced on Wednesday that they would both be investing hundreds of millions of dollars in their employees because of Republican tax reform bill that the Senate passed on Tuesday night.”

  27. Robber Baron

    That homo Keynes really knew how to roger the private sector.

  28. Dr Fred Lenin

    The fact that Trump has another three years in office ,plus another four more than likely must be galling to the u.n. Communist fascists ,Gaia knows what further destruction on their master plan willhe wreak? He has already destroyed theircarefully crafted media organs ,their flood the world with illiterate peasants plan is in grave danger,people doubt their climate scam and the “scientists “ they bought are discredited totally . Dire days for the comrades ,as they do they re running round like headless chickens ,falling in holes they dug and continuing to dig deeper . Its a pleasure to watch thank Gaia for the internet supplying the Truth otherwise we would be inundated with communist bullshit like the old Pravda/Izvestia days . If he can cobble together unity between the USA Brexit UK. japan and Russia the u.n. Communist maggots will be stuffed . Go Donald .

  29. Speedbox

    Meanwhile in this backed-up dunny, the treasurer was having a whine about the pitiful tax cuts being held up by that naughty Peanut Head, then announced the ACCC will be empowered to look at fuel prices.

    Again?! FMD, the ACCC have “looked into petrol prices” on innumerable occasions. What is so special about this time? In fact, any one of their previous reports could be dusted off, adjustments made for date/time/price and the volumes could be delivered to Government by COB next Wednesday.

    Speaking of petrol, older Cats would remember when PM Malcolm Fraser brought in “World Parity Pricing” as an excuse to add a federal tax on petrol prices. I recall Opposition Leader Bob Hawke seething with rage and promising to abolish the tax if elected PM at the forthcoming election.

    Hawke was subsequently elected PM and promptly forgot about his promise.

    At the time I had little knowledge of the political machine but I do remember being appalled at the flagrant breach of a promise. In fact, that moment was the realization that politicians are liars and self-serving parasites who will say/do anything to be elected (or re-elected). That lesson has stayed with me for the past 35 years.

  30. Habib

    Just had that chinless marxist cretin Leigh on decrying the evil of tax cuts, straight after news that the US economy has taken off like a whippet with dencorub up its clacker. No wonder there’s so many hopeless economists in this dump, with fucknuckles like that pillock indoctrinating them.

  31. Herodotus

    I caught a bit of NPR on ABC News Radio at lunchtime. It was all about casting doubt on the tax cut scenario. Like listening to a radio station where all the staff are clones of Cameron Stewart, he of the daily Trump Derangement in The Australian – which is sadly lacking some decent commentary on the USA political scene.

  32. Tel

    Again?! FMD, the ACCC have “looked into petrol prices” on innumerable occasions. What is so special about this time? In fact, any one of their previous reports could be dusted off, adjustments made for date/time/price and the volumes could be delivered to Government by COB next Wednesday.

    No quite, because the whole situation is different now. Look, back around 2007 when GWB was in the White House and crude oil was USD100 a barrel and the AUD was strong, we had petrol prices at less than $1.50 but today crude oil is half the price while the AUD is about 75c or something like that and petrol is more expensive than it was 10 years ago.

    Part of the thing is we offshored all our refinery capacity and closed most of the Australian refineries. Thus we no longer depend on importing crude, but import finished products instead. These finished products are more sensitive to the fluctuating AUD and less sensitive to crude oil prices.

  33. Habib

    We still are a net exporter of product, including all our diesel which is shipped offshore to placate the imbecile greens- the refineries quite rightly weren’t going to spend the $ to reconfigure to make low sulfur, so all diesel used here comes from Singapore, and all the product made here is exported. Wonder what the carbon footprint is for that logical policy?

    Under parity pricing all our product is based on Tapis price, which is usually high. A cosy setup between the oil companies and the federales, which ignores the cost of production. While Tapis is high, they split the margin so it’s not just excise and GST they’re stealing from us. The bastards should be doused and ignighted, I’d stand the cost of unleaded for that use. Although heavy crude would be much cheaper, imported, and much slower burning. A win on all counts.

  34. Habib

    And this has come completely from left field, such a thing was not predictable, expected and inevitable.

    This is a pretty awful labor government. I reckon it’s approaching Gillard’s lofty precedent.

  35. Zatara

    Effects of the US Tax Cut Bill are already being felt. (From various sources)

    AT&T said in a press release Wednesday that it would give more than 200,000 of its U.S. workers who are union members a special bonus of $1,000. The company also increased its capital expenditures budget by $1 billion in the U.S.

    Later in the afternoon, cable and media company Comcast NBC Universal made a similar move: it announced it would give special $1,000 bonuses “ based on the passage of tax reform and the FCC’s action on broadband.” Those bonuses would apply to more than 100,000 employees that are eligible and not in executive roles. The company also made a big spending commitment to bolster its broadband plants, television and film production, and theme parks, pledging an outlay of at least $50 billion over the next five years.

    Wells Fargo said it will boost its minimum wage to $15 an hour, as well as donate $400 million to nonprofit and community organizations.

    Major government contractor Boeing said it will provide an additional $300 million for job-training, facility upgrades and charitable giving.

    Seattle-based banking company Washington Federal said it would give 5 percent merit increases to all employees earning less than $100,000 annually, as well as invest in employee training and technology upgrades, and make a $5 million contribution to its main philanthropy foundation.

    Fifth Third Bank said Wednesday it would boost the minimum pay for its employees to $15 per hour. About 13,500 workers or three-quarters of the bank’s payroll will also receive a one-time $1,000 bonus.

    Not too shabby for a bill that hasn’t even been signed yet.

  36. Makka

    Meanwhile in this backed-up dunny, the treasurer was having a whine about the pitiful tax cuts being held up by that naughty Peanut Head, then announced the ACCC will be empowered to look at fuel prices. More guvvmit, that’ll fix it!

    Good summation.

  37. Irreversible

    On the available evidence this tax bill will sharply expand the deficit, which is already beyond sense. If the GOP intends to do anything at all about the deficit they will certainly cut very large amounts of welfare, health and other chunky parts of the budget aside from defence – which has been hiked. The formula at work here will very likely bring on a very aggressive populist wash from the left – one that might coincide with the collapse of the GOP. Or we might see the US turn into a big version of Greece. Either way, the picture is getting worse.

  38. Empire

    On the available evidence this tax bill will sharply expand the deficit, which is already beyond sense. If the GOP intends to do anything at all about the deficit they will certainly cut very large amounts of welfare, health and other chunky parts of the budget aside from defence – which has been hiked. The formula at work here will very likely bring on a very aggressive populist wash from the left – one that might coincide with the collapse of the GOP. Or we might see the US turn into a big version of Greece. Either way, the picture is getting worse.

    Wishful wrongology.

  39. Makka

    Either way, the picture is getting worse.

    Keynesian leftists hate prosperity.

  40. mh

    With Trump cutting immigration levels, per capita GDP growth will be substantial.

    Americans chose wisely.

  41. Defender of the faith

    Trump in fact is the the biggest Keynesian of recent presidents. Massive deficits boosted by tax cuts and big increases in spending on top of virtually free money in debt markets. Even while corporate balance sheets accrue ever more cash. The fake is faking it

  42. John Constantine

    Trumpnado cuts taxes.

    In Zimbostralia, the State introduces PigPass next year, the electronic online documentation of the internal passport required every time an individual pig is moved inside Australia.

    The private ownership of backyard porkers is obsolete and deplorable.

    Comrades.

  43. Irreversible

    @mh: Keynesian??? leftist???

  44. Hydra

    Articles about the British economy continue to say good things are happening “despite” Brent, rather than “because of” Brexit.

    Are they really that dumb or just trying to convince people?

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