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Tue Jul 6, 2021, 06:48 AM

NYT Krugman: It's morning in America

https://www.nytimes.com/2021/07/05/opinion/joe-biden-economy.html

Last Tuesday President Bidenís Council of Economic Advisers published a blog post warning everyone not to make too much of any one monthís employment report. It presumably released this in advance of Fridayís report to fend off possible accusations that it was just trying to make excuses for a weak number. As it happened, however, the report came in strong: The economy added an impressive 850,000 jobs.

The job gain was especially impressive given widespread claims that businesses couldnít expand because generous unemployment benefits were discouraging workers from taking jobs. (Recent benefit cuts in many states came too late to have affected this report.) Well, somehow employers are managing to hire a lot of people anyway.Oh, and so much for Donald Trumpís warnings that there would be a ďBiden depressionĒ if he werenít re-elected.

That said, the councilís points were well taken. Covid-19 created huge dislocations in the economy, and as we recover from these dislocations economic data are unusually noisy ó largely because the standard adjustments statisticians make to smooth out things like seasonal variation donít work well in an economy still distorted by the pandemic.

At this point, however, we have enough data in hand to declare that the economy is booming. In fact, itís booming so strongly that Republicans have pivoted from claiming (falsely) that weíre experiencing the worst job performance in decades to lauding the employment numbers and giving credit to Ö Trumpís 2017 tax cut.
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MoJoe continues to deliver on his promises. Yes folks, the Biden Boom is here, increasing Dems chances for the midterms!!
Hail to our Chief!!

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Reply NYT Krugman: It's morning in America (Original post)
onetexan Jul 2021 OP
nuxvomica Jul 2021 #1
Klaralven Jul 2021 #2
jaxexpat Jul 2021 #3
Hekate Jul 2021 #4
DallasNE Jul 2021 #5

Response to onetexan (Original post)

Tue Jul 6, 2021, 07:26 AM

1. If the economy overheats, is repealing the tax cut a remedy?

I don't know much about economics so I'm not sure but I would think that barring another pandemic wave, this short-term inflationary pressure could get out of hand and I wonder of repealing the tax cut would be a good remedy in that case or not. I'm thinking that if it is, and the repeal is done, probably through reconciliation, we could see a major positive shift in income inequality during Biden's term. I consider income inequality to be at the root of a lot of the country's problems.

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Response to onetexan (Original post)

Tue Jul 6, 2021, 07:28 AM

2. Time to start working on the $85,473 per person national debt.

 

https://www.usdebtclock.org/

$226,974 per taxpayer.

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Response to Klaralven (Reply #2)

Tue Jul 6, 2021, 11:40 AM

3. Like the goal. Debt bad.

Perfect opportunity for implementing the, "much from those who have much and less from those who have little" plan. It's probably cheaper if you go flat-out, "from those who have much, much is to be expected". Serve with a twist of "to each according to their need, from each according to their plenty".

The national debt is a grudge match between common sense and the extremely wealthy. It will not be remedied until either ALL wealth is in the hands of the fewest or the wealthy, as one, divest into the treasury down to the average wealth of all. The latter, I think, would result in a national surplus. A rather large surplus at that. One that may end world hunger, cure cancer, stop climate change, make war impossible, promote universal justice and bring campaign spending into the realm of sanity.

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Response to onetexan (Original post)

Tue Jul 6, 2021, 01:28 PM

4. Kickin' for Krugman

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Response to onetexan (Original post)

Tue Jul 6, 2021, 08:40 PM

5. The Dislocations Were Not All Caused By The Pandemic

The Trump tariffs that preceded the pandemic caused its own dislocations. Example, the tariffs on lumber from Canada ground housing construction to a halt. Indeed, the disruption to supply chains are still being felt to this day.

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