Capital investment BOOM! new plants, eqpt, machinery, investment; “A capital-goods boom is not a sugar high.” –Steve Moore, Heritage Fdn (@StephenMoore)
Steve Moore, Heritage Foundation, anent: The US is in an economic boom. A representative of The Resistance (a journo from WaPo) asserted that the boom is due not to Pres Trump but to Pres Obama [what?]. It’s especially a capital goods boom: there’s a big difference between a recovery (which Pres Obama did engender, albeit the weakest in history) and a boom, which we’re in now – consumer and investor confidence, employment rate, GDP rate (over 3% for two quarters), et al. The Home Depot CEO: “This is the best consumer market I’ve seen in 35 years.” Larry Kudlow: capital investment boom – new plants, eqpt, machinery, workers, where businesses expand operations because of optimism about the future. The country now has 7 million more jobs than people to fill them. “A capital-goods boom is not a sugar high.” The main beneficiaries of this are workers: after-tax incomes are now rising for the first time in 20 years. A tight labor market obviously favors workers. Also, employees get more hours, leading to bigger paychecks. Unfortunately, Pres Obama made welfare much more generous and raised taxes, leading to a big increase in the welfare state. If you’re able-bodied, you need to do at least some work in order to get subsidies. Obama issued three regulatory rulings a day – he increased the total by 100 million(??) – which Trump has reduced by the biggest retrenchment ever.