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Thread: Business spending...tax cut impacts on the economy

  1. #1

    Business spending...tax cut impacts on the economy

    When the only places you get your information from are political propaganda sites or fringe sites that create meaningless reports, you will be woefully and consistently uninformed (like GURPS and Gilligan). Here is some recent data about business spending that highlights the ignorance of recent posts regarding the impact of the tax cuts. You can go here for more info, charts, graphs and videos: https://finance.yahoo.com/news/trump...152138386.html

    Capital goods orders, excluding aircraft and defense. This includes business spending on machinery, equipment, computers, office furniture and most other things companies need to operate. Spending picked up in 2016 and accelerated in 2017. But the rate of growth has actually slipped since then.

    Small-business spending plans. This survey by the National Federation of Independent Business measures the percentage of business owners saying they plan to increase spending on equipment or facilities within the next three months. It has generally been drifting upward since the lows of 2009, but at 29%, is now three points lower than it was last August.

    ISM manufacturing new orders index. This is a survey of businesses conducted monthly by the Institute for Supply Management, which asks, among other things, about the level of new orders manufacturing firms are receiving from customers. The index has been climbing since 2015, but it’s lower now than it was at the end of 2017.

    Morgan Stanley capital-expenditure plans index. This index tracks data on manufacturing spending plans in several Federal Reserve business surveys, and often signals spending that takes place about three months in the future. This index hit a record high in March, but fell back in April and May. Morgan Stanley says the data “remains consistent with continued strength in capital spending,” but doesn’t attribute that to tax cuts. A bigger factor: rising oil prices, which have triggered more investment at energy firms that profit more as prices rise.
    The data simply don't support either GURPS, Gilligan's or their sources uneducated opinions. Which isn't a surprise. Now I am not saying that economy is doing poorly (although I am sure GURPS and Gilligan will attempt to make that point). I am only pointing out that, as usual, GURPS and Gilligan are wrong.

    Additionally, the Federal Reserve released its Beige Book report yesterday. Here is the first sentence of their overview. You can read the rest here: https://www.federalreserve.gov/monet...book201805.htm

    Economic activity expanded moderately in late April and early May with few shifts in the pattern of growth.
    At this point, it is reasonable, rationale and logical to conclude that the tax cuts are having little impact on the US economy overall. Which was the general expectation when the legislation was passed. This could change. Businesses could spend more since they have to spend before year end in order to take advantage of accelerated depreciation schedules. However, businesses have had access to extremely cheap money for the last 8 years. Outside of the oil patch, which has higher oil prices as an incentive to invest, companies are not seeing a massive increase in demand ( The Beige Book overview also notes that "consumer spending is soft").

    BTW...the collapse of oil prices is what caused US GDP to tank at the end of 2015 and early 2016 just as the rise in oil prices now will have a positive impact on manufacturing and mining due to expansion of the oil and oil services industries. But folks like GURPS and Gilligan can't put these pieces of the puzzle together...they think everything happens because of politics.

    The educated, the realists or those who actually care more about the future of this country will look to the facts and the data to determine what actions are appropriate and what results are most likely to occur...regardless of political persuasion. However, if it is your preference to remain ignorant and uninformed with the belief that the economy changes direction only on Inauguration Day, then just continue to follow the wonderful examples you already have in GURPS and Gilligan.

  2. #2
    Quote Originally Posted by transporter View Post
    When the only places you get your information from are political propaganda sites or fringe sites that create meaningless reports, you will be woefully and consistently uninformed (like GURPS and Gilligan).
    LMFAO!! You slam Investors Business Daily, Economist, WSJ, and others that I use...and refer to yahoo instead..

    You a riot, sweet cheeks! Next you'll be quoting Teh Krugman...
    "Dark humor is like food. Not everyone gets it." - J. Stalin

  3. #3
    INGSOC GURPS's Avatar
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    Quote Originally Posted by transporter View Post
    (like GURPS and Gilligan). But folks like GURPS and Gilligan can't put these pieces of the puzzle together ...


    Quote Originally Posted by transporter View Post
    The educated, the realists or those who actually care ......
    is that what you call yourself 'educated', a realist

    Quote Originally Posted by transporter View Post
    At this point, it is reasonable, rationale and logical to conclude that the tax cuts are having little impact on the US economy overall.
    Innuendo, Supposition, and OPINION ... but yet you quote out this as FACT and refute it

    Economic activity expanded moderately in late April and early May with few shifts in the pattern of growth.


    Quote Originally Posted by transporter View Post
    ..... then just continue to follow the wonderful examples you already have in GURPS and Gilligan.


    you cannot help yourself, do you really thing constantly hurling insults at me or Gilligan really make YOUR OPINION anymore accepted


    Quote Originally Posted by transporter View Post
    .... they think everything happens because of politics.
    Fantasy, Supposition, Innuendo and YOUR Opinion
    We’re tempted to suggest a conspiracy here — but it’s just liberals agreeing yet again that conservatives have hidden, evil motives, because modern liberals simply can’t conceive of any other reason to disagree with the liberal consensus.

    “Moral precepts are constant through the ages and not obedient to circumstances.”

  4. #4
    Quote Originally Posted by Gilligan View Post
    LMFAO!! You slam Investors Business Daily, Economist, WSJ, and others that I use...and refer to yahoo instead..

    You a riot, sweet cheeks! Next you'll be quoting Teh Krugman...
    Speaking of riots.
    Quote Originally Posted by vraiblonde View Post
    If you don't like it, go #### yourself.

  5. #5
    Quote Originally Posted by Chris0nllyn View Post
    Speaking of riots.
    Speaking of failed communication skills..
    "Dark humor is like food. Not everyone gets it." - J. Stalin

  6. #6
    Quote Originally Posted by Gilligan View Post
    Speaking of failed communication skills..
    For that quib to work, someone would have had to actually mention that, but don't let that get in the way of your need to be a dick.
    Quote Originally Posted by vraiblonde View Post
    If you don't like it, go #### yourself.

  7. #7
    Quote Originally Posted by Chris0nllyn View Post
    For that quib to work, someone would have had to actually mention that, but don't let that get in the way of your need to be a dick.

    "Dark humor is like food. Not everyone gets it." - J. Stalin

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