The trade and economy mega-thread (7 Viewers)

[superchuck500]

Is there a trade deal with China? Is it really a deal or just a pull-back to status quo ante? Is Trump advancing US interests in this well-executed trade battle plan or was this poorly conceived from the start . . . and harmful?

I think the jury's still out, but I haven't seen that the Chinese are offering much in compromise - and it's not even clear if there's going to be an agreement. But it's clear they are working on something and I'm sure Trump will sell it as the greatest trade deal ever. The proof will be in the details.

 

[DaveXA]

If a flat tax rate is set at 20%, a family making 50,000 will pay 10,000. A family making 500,000 will pay 100,000.
With tariffs, if a family making 50,000 is paying an extra 10,000, that is 20% of their income. A family making 500,000 and paying 10,000 will only use 2% of their income.

Only if it's actually flat. You'll have to remove all of the deductions and credits that substantially lowers the effective rates. The rich will never allow that to happen.

And how do you figure a family making $500k will only pay $10k due to tariffs? They pay however much based on how much they spend on goods, no?

 

[Neworleansfan]

And how do you figure a family making $500k will only pay $10k due to tariffs? They pay however much based on how much they spend on goods, no?

I am not saying that they will only pay $10,000. If both families spend on the same goods and services (foods, utilities, insurance, transportation), then one family has to use 20% of their income while the other only uses 2%. The family making $500k will pay more only if they spend more. The problem is the other family can’t afford to spend more because of the tax burden. Hence, the widening wealth gap.

 

[UncleTrvlingJim]

Yeah, I don’t think I will ever understand why he turned on Canada so hard. I mean, Mexico I get the motivation. But Canada? Who we do need to buy things from, no matter what the idiot says.

 

[MT15]

Why is he sounding like Putin on Crimea?

Trying to be like Daddy?

 

[DaveXA]

I am not saying that they will only pay $10,000. If both families spend on the same goods and services (foods, utilities, insurance, transportation), then one family has to use 20% of their income while the other only uses 2%. The family making $500k will pay more only if they spend more. The problem is the other family can’t afford to spend more because of the tax burden. Hence, the widening wealth gap.

Sure, but the wealthier family is certainly going to spend more of their income on goods than the lower income family. Maybe not 20% level, but it's closer to that than 2%.

That said, both the tariffs and flat taxes are regressive for slightly different reasons.

 

[efil4]

Prepare for a pretty wild Monday on Wall St.
Futures are pointing at a rough open.

 

[wardorican]

“

The Second Industrial Revolution, 1870-1914”​

The Second Industrial Revolution, 1870-1914

Between 1820 and1860, the United States was transformed by unprecedented urbanization and territorial expansion, fueling the Second Industrial Revolution.

ushistoryscene.com

The Second Industrial Revolution, which took place from 1870 to 1914, was a period of rapid technological and industrial growth. This era saw the development of new machines, production methods, and energy sources.

Inventions

• Electric light bulb: Invented by Thomas Edison in 1882
• Telephone: Patented by Alexander Graham Bell and Elisha Gray in 1876
• Internal combustion engine: Invented in 1886, this engine powered the first automobiles and airplanes
• Typewriter: Invented in 1867
• Phonograph: Patented in 1887 by Emile Berliner
• Radio: Invented in 1895
• Aspirin: Invented in 1899

New technologies

• Steel: The Bessemer and open-hearth processes revolutionized steel production
• Electricity: The electric generator replaced steam and water-powered engines
• Mechanized farm equipment: Transformed agriculture into a big industry

New forms of transportation

• Railroads: Allowed for cheap transportation of materials and products
• Automobiles: The internal combustion engine made automobiles possible
• Airplanes: The Wright brothers made the first airplane flight in 1903

New forms of communication

• Telegraphs: Circulated new ideas
• Newspapers: Circulated new ideas
• Radios: Circulated new ideas

The second Industrial Revolution was foundational.

This whole concept is a silly distraction.

Things since 1914... modern aviation, aluminum alloys, superalloys, composites, advanced rubbers, modern military, nuclear power, space flight, computers, microchips, satellites.

But more importantly we saw the most implementation of technology in the mid 1900s.

Modernizing our military (tanks, fighter jets, carriers, subs), building the interstate highways, electrifying the nation, airports/aviation, public education...just to name a few. Thanks income tax, sales tax, and business taxes.