Economic News

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Mulberry Heel said:
I posted in January they would vanish once (and it was once, not if) Trump & Musk really screwed things up and the economy started to go down and the tariffs started to hit and all the rest of his and Elon's and his administration's crap started to really hit the fan. Some Trumper posters said here two or three weeks ago that they were just "taking a break from the board" and would return "sometime", but "sometime" seems to be drifting further and further away as the trajectory of events just keeps moving downhill, not only economically, but in pretty much every other way as well.
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Who was the one poster that kept saying something like "Relax, why are all the libs going crazy over Trump? Give him a chance, give it a while. Let his policies take hold, you might be surprised at how things turn out"

Where is that guy now? I think it was back in Dec. or Jan. he was saying that crap. Vanished, just like you said...
 
CFordUNC said:
Be interesting to see how that affects flight fares. They've been astronomically high lately. I'm in a stretch of 6 consecutive weeks on the road for work and I don't think I've had a fare under $700. And none of these in particular are trans-con trips.
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As a business traveler you’re not inconveniencing yourself to get a lower fare. (And neither did I when I was flying regularly for business.). Most cheap fares require Saturday night stays and other inconveniences that casual travelers will endure to save on airfare, and which travelers spending company money scoff at.
 
farce© said:
As a business traveler you’re not inconveniencing yourself to get a lower fare. (And neither did I when I was flying regularly for business.). Most cheap fares require Saturday night stays and other inconveniences that casual travelers will endure to save on airfare, and which travelers spending company money scoff at.
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Great points, for sure!
 
superrific said:
Where are you seeing 20% of GDP versus 23% of GDP?
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Looking at charts. For the last 30 years we have spent around 20% of GDP except for the financial crisis (2009-24.3%) and Covid (2020-30.7%). After the financial crisis spending fell back to 20% of GDP by 2012. In 2024 we spent 23.4% of GDP. The government has spent a lot of money the last 4 years. To say it's not contributing to GDP is disingenuous. I mean, it's exactly the reason the government spends money during recessions, to stimulate economic activity.
 
Purple Nurple said:
Looking at charts. For the last 30 years we have spent around 20% of GDP except for the financial crisis (2009-24.3%) and Covid (2020-30.7%). After the financial crisis spending fell back to 20% of GDP by 2012. In 2024 we spent 23.4% of GDP. The government has spent a lot of money the last 4 years. To say it's not contributing to GDP is disingenuous. I mean, it's exactly the reason the government spends money during recessions, to stimulate economic activity.
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Oh, I didn't read the units on that chart too well. My vision is getting worse. Need to zoom in more.

1. The relationship between government spending and GDP is complicated. Most economists think that GDP can't be juiced with government spending, because the additional spending crowds out the private sector. The only time GDP can be juiced is when the private sector is operating well below capacity -- as you say, during recessions. That's to say that fiscal spending should be counter-cyclical. Spend money during recessions to boost the economy, and cut spending during a boom because it's not doing much.

2. Keep in mind that Social Security does not affect GDP, along with other social safety net items like unemployment, disability, etc. So a big chunk of that federal spending is not applicable.
 
nycfan said:
White House Press Secretary Karoline Leavitt downplayed the drop in the stock market, arguing that the economy is in a period of transition.

“When it comes to the stock market, the numbers that we see today, the numbers we saw yesterday, the numbers we'll see tomorrow, are a snapshot of a moment of time,” she told reporters at a briefing at the White House on Tuesday.

Leavitt added, "We are in a period of economic transition. We are in a period of transition from the mess that was created by Joe Biden and the previous administration."

As for worried investors, Leavitt said, “If people are looking for certainty, they should look at the record of this president.”


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Maybe not the most reassuring suggestion?

Bankruptcy GIF by Giphy QA
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Let’s look at the history, then. What did the stock market look like when he left office?
 
Poor poor Tesla owners.

Recent data from CarGurus shows the price of the average used Tesla was roughly $10,000 lower than other EVs in January of this year.

While all EVs are seeing price declines, Tesla’s drop is far steeper than its competitors’. Year-over-year declines last November, according to iSeeCars, topped 21%. That’s compared to an industry average of 1.4%

Used EV prices for vehicles from Ford, Lexus, Nissan, Hyundai, Acura, and more, however, all saw slight increases in that same time period.

fortune.com

Tesla owners offloading their cars over Elon Musk backlash are in for a nasty surprise

A different kind of sticker shock.
fortune.com fortune.com
 
What if Trump is trying to destroy the economy so that Republicans can turn around and drop tax rates to 10% and implement a federal government that resembles one of the 19th century?

The common people will support it because the tax reduction helps dig out of the major recession/depression.

Basically break things and you get to rebuild it the way you want it.

I wouldn’t trust these people to pull that off or to be able to finely manage an economy as would be necessary.

Also Medicare and Social Security would be issues.
 
“Inflation came in cooler for February. That could give Federal Reserve officials extra confidence that price pressures were easing in the U.S. economy, just as President Trump slapped new tariffs on China and threatened higher duties on major trading partners.

The report isn’t likely to change the Fed’s decision to hold rates steady next week. The Fed plays closer attention to a separate gauge that analysts said could show firmer price pressures in February. That reading won't appear until later this month, but a third inflation series due Thursday will tell officials where their preferred measure is likely to stand.
Taken together, this week's two inflation reports could shape economic projections that officials will submit at the meeting. As part of those projections, they will outline their latest expectations for rate cuts this year. …”

 
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