Facts Are Such Inconvenient Things

The biggest advantage the Republicans will have in 2020 is a strong economy. Because the Democrats know this, they are trying very hard to downplay the economic recovery that is currently taking place. They have invented some interesting facts in their attempt to do this. However, the alternative media has learned to fact check these attempts to downplay President Trump’s economic success.

Townhall posted an article today that includes some recent fact checking.

The article reports on some recent statement by Kamala Harris:

First, I’m not sure many economists or Republicans cite the stock market as the top indicator of economic health, despite her initial straw man claim. There are many other metrics that are more indicative and more helpful to building that argument, which we’ll mention in a moment.  But it’s also worth pointing out that a robust stock market is not merely good news for people who own stocks, as Harris sarcastically says.  Plenty of workers’ benefit and retirement funds, including those of many public sector employees, are tied into the performance of the stock market — so it’s not just investors who benefit when markets are humming along, and it’s not just investors who feel pain when markets sustain hits. 

Second, in her attempt to downplay the impressive, stable and low US unemployment rate, Harris recycles a claim for which AOC was slapped down by fact-checkers a few months ago.  Even left-leaning Politifact assigned her a “pants on fire” rating.  Harris’ spin is less explicitly clumsy and wrong than AOC’s, as she didn’t specifically state that the low rate is directly attributable to people working more than one job, which makes absolutely no sense — but she does use this argument to undercut the (compelling) argument that the economy is in good shape because so many Americans are employed.  While it’s certainly true that a substantial number of people are working multiple jobs in order to make ends meet, it’s not accurate to pretend that this phenomenon is sufficiently widespread as to justify Harris’ talking point.

The article further reports:

The February jobs report found that just five percent of the employed population is working more than one job, down from 5.2 percent one year ago.  The experiences of the people who constitute that five percent matter, of course, but they are not evidence of a larger trend — and certainly not a trend that represents a real basis to shrug off the historically-low unemployment rate.  The jobs report that came out on Friday was a major ‘miss’ on a key number, with the US economy adding only 20,000 jobs last month; economists were expecting 180,000.  That’s a potentially concerning data point, underscoring the folly of simply assuming that the current prosperity streak will continue unabated.  But there were positive statistics, too.  The previous two months’ job creation data was revised upward by 12,000, and the overall unemployment rate fell to 3.8 percent.  That marks 12 consecutive months, a full year, with the U3 figure at or below four percent, which is unambiguously good.

The article concludes:

Sustainability is a fair worry for the White House, but as of this moment, the most useful measuring sticks of the US economy are unemployment (3.8 percent), GDP growth (3.1 percent Q4 to Q4), and wage growth (3.4 percent).  All three are impressive.  Harris’ snarky point, therefore, is weak.  

As wages and jobs increase, voters will have to decide whether to believe what they are experiencing or what they are being told.

The Trump Economy Continues To Make News

Yesterday The Conservative Treehouse posted an article about the growth of the American economy under President Trump.

The article reports:

The Bureau of Labor Statistics has released some remarkable economic data today. There are more than seven million current job openings [See Here] and the year-over-year average wage gains are 3.3% [See Here]

I suggest you follow the link and read the entire article. It is a fairly detailed analysis of what has happened due to de-regulation and tax cuts.

The article concludes:

The investing class economy, ie. another name for a ‘service-driven economy’, has been the only source of historic reference for approximately three decades. These talking heads convinced themselves that a “service driven economy” was the ONLY economy ever possible for the U.S. in the future.

Back in January 2017 Deutsche Bank began thinking about it, applying new models, trying to conceptualize and quantify MAGAnomics, and trying to walk out the potential ramifications.  They began talking about Trump doubling the U.S. GDP growth rate when all U.S. investment groups couldn’t yet fathom the possibility.

It’s like waking up on Christmas morning every day to see the pontificating Fed struggling to quantify analysis of their surrounding reality based on flawed assumptions. They simply have no understanding of what happens within the new dimension.

Monetary policy, Fed control over the economy, is disconnected and will stay that way for approximately another 12-14 months, until Main Street regains full operational strength –and– economic parity is achieved.

As we have continued to share, CTH believes the paycheck-to-paycheck working middle-class are going to see a considerable rise in wages and standard of living.  How high can wages rise?… that depends on the pressure; and right now the pressure is massive.  I’m not going to dismiss the possibility we could see double digit increases in year-over-year wage growth in multiple economic sectors in several regions of the U.S.

Remember, as wages and benefits increase – millions of people are coming back into the labor market to take advantage of the income opportunities.  The statistics on the invisible workforce varies, but there are millions of people taking on new jobs in this economy and the participation rate is growing.

It is time that the average working American got a few economic breaks. President Trump is providing those breaks.

What Does This Mean For America’s Future?

The Washington Examiner reported today that the rate of homeownership in America has declined steadily since 2006.

The article includes the following graph:

HomeownershipThe article explains:

The only age group that saw a rising homeownership rate over the past year was 35-44-year-olds, with younger and older people turning more to renting.

So let’s take a look at this from a broader perspective. Part of the decline is due to the housing bubble. However, we need to look at the impact of homeownership on our society and how the decline in homeownership will impact us in the future.

Homeowners are invested in their houses and in their neighborhoods. Generally speaking they take pride in both and will endeavor to keep both their homes and neighborhoods clean and crime-free. Under most circumstances, a home will increase in value, providing a basic investment for people who may not be able to invest in other assets. The increase in renters means an increase in landlords, people who own the rental property. It seems to me that the increase in landlords and renters is an indication that the middle class is being squeezed out economically. I understand that in many parts of the country housing is extremely expensive, but there are also areas of the country where jobs are available and housing is reasonably priced. I fear that the decrease in homeownership represents a moving away from the idea of owning something, taking care of something, and having an asset in the future. It may be a reflection of our instant gratification society rather than an economic indicator. It also may be a reflection of the American culture versus the culture of the large number of immigrants currently coming to America from different countries. Private property rights are one of the backbones of our freedoms–other countries may not have those rights. In order to keep our middle class strong economically and help keep our neighborhoods crime-free, we need to encourage all Americans, whether they were born here or just arrived from another country, to own homes and take care of them.

A Ponzi Scheme Works As Long As There Are New People Getting In

Today’s Wall Street Journal posted an article about the 1,400 union-run retirement plans that are poorly run and underfunded.

The article reports:

…Multi-employer plans in the U.S. are underfunded by some $369 billion. An estimated $43 billion of that off-balance-sheet liability belongs to the 44 S&P 500 companies that are exposed to multi-employer plans. The other 88% of the $369 billion is borne by small, mid-cap or private firms that may be even less prepared to cover the obligations. The report says Safeway’s $6.9 billion in liabilities amount to 76% of the company’s market cap, for example.

The article points out that CEO’s and union chiefs have ignored the problem, preferring to invest in current wages and benefits rather than funding pensions. If these unfunded pensions are dumped into the Pension Guaranty Fund, the people expecting the pensions will receive a maximum of $12,800 a year–the maximum payout of the fund.

In June 2010 I posted an article (rightwinggranny.com) about the coming crisis in union retirement plans. When you consider the amount of money the unions spend on political causes, you would think they might have some they could invest to make sure their workers actually receive the benefits promised them. Right now, union pensions are a ponzi scheme (just like Social Security). That will not change until union members realize what is going on and force a change.

Just for the record, the website Open Secrets is reporting that labor PACS have contributed $28,047,761 to political campaigns this year (figures as of April 30, 2012). Of those contributions, 88% went to Democrats and 12% to Republicans.

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If Investors Ran Their Portfolios Like The Government Runs Theirs…

Today’s Detroit News reported today that the government has revised the estimated losses from the auto bailout up $170 million.

The article reports:

In the government’s latest report to Congress this month, the Treasury upped its estimate to $23.77 billion, up from $23.6 billion.

Last fall, the government dramatically boosted its forecast of losses on the rescues of General Motors Co., Chrysler Group LLC and their finance units from $14 billion to $23.6 billion.

Much of the increase in losses is due to the sharp decline of GM’s stock price over the last six months.

Three solar companies the government invested in went bankrupt or laid off workers last week. The losses in the bailout of the auto companies were considerably more than what was initially projected. Have we learned yet that the government should not be investing taxpayer money in private businesses? Government interference in the free market has done nothing but take large amounts of money out of taxpapayers’ pockets and increase the national debt. Someone is needed in Washington who can put a stop to the overspending and misuse of taxpayers’ money.

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