| scaeagles |
07-13-2005 04:45 PM |
There are certainly things to be wary of - social security and medicare being the two primary things with boomers nearing retirement.
However, I am encouraged by a few things.
First, the tax cuts certainly stimulated economic growth and higher tax receipts from businesses. Taking out the depreciation change, there was still significant increases in that area, which happened because consumers had more of their own money to spend.
Secondly, when coupled with the unemployment rate down to five percent, it shows that businesses are hiring more workers.
Thirdly, the article states that incomes are growing.
Lastly, though I am against deficit spending except in matters specifically mandated by the Constitution of the USA, a deficit of 3.5% of the GDP is historically not too bad, and much, much better than anticipated.
There are always financial crises looming on the horizon of any macro-economic situation.
One other thing encourages me - oil prices are incredibly high. Thus fuel prices are are way up, and since close to 90% percent of all consumer products are shipped by truck, it is remarkable that inflation is not a problem. Interest rates remain low because of that, and that helps a debt ridden consumer population, and cheap money also is an economic stimulus.
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