Obama leaving Trump with a Terrible Economy... in charts...

[fhl]

You know those stats we always see about the economy and the mkts under democrats and republicans?

Fast forward five or ten years and they're going to be telling us the current rally is Obama and democrats.

And then when a democrat replaces Trump and the mkt tanks between nov and jan after that election, you know the drill, it was all trump and republicans fault.

 

[Ricter]

Looks like Drumpf still hasn't changed (yet) on his desire to go full Keynesian on the economy. With a rep majority in Congress only reps will be blamed if they block his desire.

Of course it's not really Keynesian to cut taxes and increase spending when the economy is expanding, Keynes advocated the opposite during "the boom", to pay off the debt accumulated during the contraction.

 

[Tsing Tao]

Looks like Drumpf still hasn't changed (yet) on his desire to go full Keynesian on the economy. With a rep majority in Congress only reps will be blamed if they block his desire.

Of course it's not really Keynesian to cut taxes and increase spending when the economy is expanding, Keynes advocated the opposite during "the boom", to pay off the debt accumulated during the contraction.

Cannot argue with any of this. However, what we don't know is what Trump will do in regards to cutting wasteful spending, and getting rid of bloated government. That's an important part of the equation. If all he does is try to push through more spending, I will be the first one in line to criticize.

 

[java]

Money spent both by government and private enterprise in an environment with less regulatory friction will erode bloated government and it's wasteful spending.

 

[Tsing Tao]

Money spent both by government and private enterprise in an environment with less regulatory friction will erode bloated government and it's wasteful spending.

I'm not sure I follow that. Please explain, if you don't mind.

 

[java]

I'm not sure I follow that. Please explain, if you don't mind.

Think of Drumpf as the brand name for the old common household economic laxative called deregulation. Once the intestines are greased the bloating usually passes.

 

[Tsing Tao]

Think of Drumpf as the brand name for the old common household economic laxative called deregulation. Once the intestines are greased the bloating usually passes.

A rather crude, but fitting, analogy. But I was more questioning how money spent by the government can erode bloated government and wasteful government spending.

 

[java]

A rather crude, but fitting, analogy. But I was more questioning how money spent by the government can erode bloated government and wasteful government spending.

multiplier effect of efficient government regulations. We have never seen government money spent in a deregulated environment. When I say deregulated, I just mean repealing bad regulation. The bloated government is the one spending the wasteful money. They thrive on regulation. Eliminate their food source and they will starve to death.

 

[Tsing Tao]

multiplier effect of efficient government regulations. We have never seen government money spent in a deregulated environment. When I say deregulated, I just mean repealing bad regulation. The bloated government is the one spending the wasteful money. They thrive on regulation. Eliminate their food source and they will starve to death.

Not sure I agree. Government spends money on what government wants, and within the regulations (since it, itself has created the regulations). There might be some residual growth, but the government is the least efficient at spending since it has to take from someone else in order to give to somebody.

No doubt you are correct that an era of deregulation will help the economy, and I agree the government will get the credit of deregulating. I just disagree with the level of productivity they can generate from their spending.

 

[Ricter]

but the government is the least efficient at spending since it has to take from someone else in order to give to somebody.

So does business need other people's money. A review of ROI comparing government investment vs. the private sector found that government has a better track record. Because of more oversight, no doubt.