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Los Angeles, California, United States
The blog 'Breaking Bread' is for a civil general discussion, like you might have at the dinner table with guests. The posts 'Economics Without the B.S.' are intended for a general audience that wouldn't have to know the difference between a Phillips Curve, a Laffer Curve, or a Cole Hamels Curve. Vic Volpe was formally educated at Penn State and the University of Scranton, with major studies in History, Economics and Finance, and Business; and, is self-educated since by way of books and on-line university courses. His practical education came from fifty years of work experience in the blue-collar trades as well as a white-collar professional career -- a white-collar professional career in production and R&D. In his professional career and as a long-haul trucker, he has traveled throughout the lower forty-eight. From his professional career alone he has visited many manufacturing plants in the United States, Europe and China. He has lived in major metropolitan areas and very small towns in various parts of the United States. He served three years with the U.S. Army as an enlisted man, much of that time in Germany.

Thursday, September 28, 2017

Trump's Tax Plan Effect On Trade Deficit

Trump's Tax Plan Effect On Trade Deficit



Economics Without The B.S.**: 

[**  Double entendre intended.]

 Do you wonder if there is any coordination on the Trump Economic Team -- Wilbur Ross, Steve Munchin, Gary Cohn, Peter Navarro, Robert Lighthizer -- and Trump himself?

 The argument should not be whether Trump's Tax Plan helps or hurts the Middle Class; it should be does it help or hurt broad-based economic growth.

 If you relate the Tax Plan to Trade and our persistent trade deficit due to U.S. spending in excess of savings, and the trade deficit being a reflection of the overall economy, then the tax cuts are going to exasperate the savings/investment ratio (make it worse) with more spending and bigger deficits and a drag on economic growth -- a short-term fix with long-term detrimental consequences. If tax cuts just feed our consumption habits (like it did under Bush) instead of investment, then we are worst off. If it went toward investment then we should be better off. But where in fiscal policy is there incentives for investment?...we didn't get any with Bush and it looks questionable with Trump.

 I'm curious if Peter Navarro had any input into the Trump Tax Plan, because government deficits do affect trade imbalances. Not that I'm in agreement with Navarro's point of view -- I'm not; but, he is interesting to listen to (since the 1990s). He had Trump's ear.

 So what is this Economic Policy? And who is Trump going to appoint to the Fed to implement all this Economic Policy? We have several vacancies on the Board beside Yellen. Coordination??? My goodness, why would I think that? Why should Trump's Economic Policy be any more coordinated than his National Security Policy?



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