The Economic Consequences of Trump (Easiest Depression Ever?)
Join Date: Jul 2012
Posts: 15,502
I think economic disaster is on the horizon in this country.
The extreme deregulation and general incompetence of this Administration will, eventually, be felt. At the Federal level, and in the majority of states, it is now explicit government policy to allow rich people to do whatever the **** they want. This is resulting in ever more extreme income inequality and the deterioration of the working and middle classes. This is a problem for many reasons, not least of which is that consumer spending is 70% of the economy. And consumer debt is at all time highs exceeding $13 trillion (almost 100% of GDP). In short, consumers are getting poorer and are already tapped out financially. In a downturn (more below), consumer spending will collapse.
In addition, the Federal Government is going to be nearly powerless to combat the next economic downturn. They can't meaningfully lower interest rates, already near historic lows, and they won't be able to spend their way out without literally bankrupting the country (the GOP will block any stimulus anyway, unless it includes still more tax cuts for billionaires). We are already at $-1,000,000,000 annually, with a good economy. It's going to get worse, not better, and eventually borrowing costs will rise as our credit deteriorates.
Another problem is that many Americans have wealth only on paper. A major decline in home prices will wipe out millions of Americans' biggest store of wealth and bankrupt people who are artificially financing a lifestyle they can't afford with borrowing. A stock market decline will have a similar effect.
Then we have health care. Due to the GOP being a complete ****ing disgrace, costs keep going up, up, up and outcomes do not improve. Health care is roughly a fifth of the economy, and by and large the industry doesn't produce much or otherwise make the country wealthier. And since we aren't going to let people die in the streets, much as the GOP would love that, the uninsured and underinsured will continue to be a massive economic drag (not to mention all the people scared to switch jobs or start a business because of health care).
Ultimately political corruption, incompetence and stupidity will matter. It might take a year or two, but **** is going to get really bad.
Join Date: Oct 2008
Posts: 29,301
But the sporting events are good at least
Join Date: Dec 2008
Posts: 15,054
Join Date: May 2012
Posts: 31,720
Join Date: Aug 2012
Posts: 38,654
Join Date: Jul 2003
Posts: 72,330
ya but how good will the poker games be?
Join Date: May 2012
Posts: 53,701
