Quote:
Originally Posted by MorTech
All the GDP growth over the last 4 years was government deficit spending. GDP is just a measure of total spending and has little to do with producing things. GDP will go down for a while as $2T+/year is removed from Government spending. Real GDP growth (or a better indicator private sector GNI) will rise eventually. Mass import tariffs are going to be disruptive but probably necessary to bring private sector growth to the USA. Things are going to get expensive but better a tax on consumption than a tax on income/production.
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Our response to tariffs is supposed to be to Buy American, even if it costs more. Strange that I don’t hear that mentioned here, where we tend to be WalMart and Amazon shoppers. I do know that my index mutual funds are down by $100,000 since their high in mid-December. I’ve cut back by 25% on my monthly disbursement from those funds. I’ll just cinch in the belt. I’m sure the market will rise again. Eventually. Making those tax cuts permanent will not help me at all. Just rich people. I don’t know anyone like that in The Villages.