The Trump administration is proposing a 56% cut to NSF, a 40% cut to NIH, and a 24% cut to NASA.
The Institute for Macroeconomic & Policy Analysis at American University released a report finding that a 25% cut in public R&D spending would reduce GDP by an amount similar to the Great Depression.
The second coming of Hoover? There are alot of similarities but can we really have another depression with the tools the Fed and Government has now?
You mean like tariffs?
Yes that is one of the similarities
There are many tools in the executive branch.
Watch them work.
As noted before, several automakers want to continuously escalate prices and margins, and, if unit volume falls, they close more plants and lay off tens of thousands more people, because they don’t care about growing the company.
Maybe this is the macro vector: TPTB don’t care about investing for long term GDP growth? They only care about getting themselves another tax cut.
Steve
Yes all by people finally realizing what they voted for.
Give it to them good and hard.
When we buy stocks, do we care about “investing for long term GDP growth?”
It’s important to face reality as it is, not as a utopian pipe dream.
The Captain
Yes, and that is why neo-liberalism is a pipedream fantasy unless backed by national policies that nudge short termist desire for gains into solid, large scale, long term major investment in
Failing such, modernity collapses into what we are seeing now in the USA, on the path to the social collapse and totalitarian madness seen in Russia and China after WWI and WWII.
I never know what these terms are supposed to mean. Wikipedia says,
Neoliberalism is contemporarily used to refer to market-oriented reform policies such as “eliminating price controls, deregulating capital markets, lowering trade barriers” and reducing, especially through privatization and austerity, state influence in the economy.[7] It is also commonly associated with the economic policies introduced by Margaret Thatcher in the United Kingdom and Ronald Reagan in the United States.[25] Some scholars note it has a number of distinct usages in different spheres:[47]
The present administration does not check all the boxes.
More importantly, the core theme of the present administration is not about liberalism, neo or old, but about running the government more inline with the Constitution.
What you are seeing is reaction to previous reaction all the way back to… Breton Woods?
In other words, I don’t buy your argument but please note.. “que no tengo vela en este velorio.”
The Captain
We seem to be investing in a game of chicken: ride the financial manipulation up, then sell before the Welchian policies have their long term impact on the company. Look at the policies at Ford and VW: shoddy quality, combined with continuous price and margin escalation. I have posted before the tables that show those two companies leading the world in warranty claims expense. I have posted before the CEO’s comments regarding their intention to continue price escalation. At some point, their high prices and shoddy product will produce a buyer revolt, and they will be whining for a government bailout. But until then, the stock market rewards their manipulation of certain financial metrics. The only reason I hold Ford stock now, is confidence that the CEO will exploit the tariff situation to gouge the living daylights out of customers, which was confirmed in his comments I posted yesterday, and the stock market will reward him for doing it, right up to the point of the customer rebellion.
Steve
What? Running the government more inline with the constitution? Nice gaslightling comment.
I dont blame you, this tactic seems to work on those who’ve sold their brains and souls to the orange devil.
The core theme of the current administration is corruption. Sure, there’s lots of incompetence and bigotry sprinkled in, but when we read about this administration in the future, corruption will be its lasting legacy.
May a bazillion likes return to you.
And may I add, in addition to corruption, collusion.
Hate to break it to you, but that was all a smokescreen for corruption and collusion… and violations of the constitution.
You have to wonder if they even see the Crypto Meme coins or that the Tariff negotiations are not going that well? How can anyone think things are ok after that spectacle with England. A big fat anouncement about nothing except England being able to ship cars over to the United States for free.
Confirmation bias weighs heavy at times.
Yes. North Korea’s constitution.
Thank you for calling me an idiot
The Captain