Like many, I suspect, I was somewhat surprised that our GDP shrank a little during Q1, especially as the job market continues to grow (despite hundreds if not thousands of government jobs ending). However, we have to remember that we essentially started off the year in Q1 with the last remaining month of Bidenomics, and no doubt the hangover from four years of said stupidity was one hell of a handbrake to the start of the year.
Still, I refuse to be a slave to the “Q” mindset so beloved of financial types, where every fiscal quarter has to show growth even if market conditions make it impossible. Which, I suspect, is what happened here, for all sorts of reasons.
It’s short-term thinking like this which causes trouble in the longer term.
What we do know, however, is that large corporations are moving production back to the U.S. and away from Asia (especially from China yay) to the tune of some $5.2 trillion — but those are just planned investments, i.e. promises, which will take some time to be realized. In addition, there are planned growths in ship-building which are almost certain to revive once-moribund areas, not to mention making us both more independent in trade and more secure militarily. But those too are still in the planning stages.
Factories don’t just spring up overnight, in other words.
Listen: we all knew that to reverse the tide of red ink, both in government spending and the trade deficit, we would have to experience some discomfort. And while ICE is doing well — from all accounts, over 60,000 illegals (mostly of the career criminal persuasion) have been booted out in the past three months — but as I’ve said before, that still leaves many millions more that still need to be expelled: millions of whom, we all know, that are sucking up public money in healthcare and education, to name but two areas of ongoing concern.
The question is: are we on the right track?
I think so. The moves to reduce tax burdens on the majority of the population, the DOGE-inspired slashing of government spending and the efforts to cut deadwood and make both business and government more efficient — by stopping the inherent inefficiencies of DEI policy, for one — all mean that the long-term prospects for our economy look promising.
And to a large degree, the market swings caused by the tariff business are simply due to the fact that markets hate uncertainty, because they’re slaves to short-term thinking — remember, stock prices are tracked daily. These are very uncertain times we live in.
But we need to give the whole thing more time to develop. We didn’t sink into quasi- (and in some cases actual) socialism in a single quarter, either. That took decades of work by socialists like Bill Clinton, Barack Obama and their cohorts in Congress from even before then. And we’re not going to reverse this tide in a single quarter. Hell, it may take years.
It didn’t take that long for Javier Milei to effect massive changes in Argentina, but it should be remembered that taming an inflation rate of hundreds is considerably easier than doing the same to an inflation rate in the teens (as we experienced under Biden), let alone getting inflation into low single digits, which in today’s world is almost impossible and takes a supreme effort of will.
But although cheaper energy and the concomitant lowering of the prices of goods and services is going to make a difference, that’s not going to happen immediately because we still have to drill new holes, build new refineries and get more nuclear power generators online to replace the unreliable and fragile Net Zero-style solar- and wind-based power generators so beloved of the Eco-Nazis. None of that can happen in a single quarter, either.
We’re doing the right thing — and by “we” I mean the Trump Administration, whom we voted into power. We just need time to get it done, and not be swayed by short-term thinking.
Don’t forget that government spending is included in the GDP total, so the spending reductions from DOGE would give the false idea of contraction.
I’m on board with what Trump is doing.
A few things I enjoy
– cuts to the indoctrination centers (alleged education). Many teachers and school administrators are entitled communist assholes who get summers off and think the world is owed to them. Vile fuckers. I hope Trump cuts more. Especially to private colleges like Harvard. Why are taxpayers finding any part of an elitist club like that?
– cuts to US Aid. Why are taxpayers finding pet projects around the world? This thing was utter fucking horse shit.
The people that hate trump or people who are just clueless – recently were online complaining about how their cheap shit made in china that was bought from Temu has higher prices. Oh no!
Here’s an idea. Complain about grocery prices which went sky high under Biden and Harris. Complain about vehicle prices which went sky high under Biden and Harris. Then you are at least talking about something worth while.
When people (individual shoppers) and the clown news network write non sense online crying how temu Chinese junk went up in price I say GOOD! Fuck you it was junk you didn’t need anyways at any price.
Buy what you need. Groceries, tools. Etc.
By the way – I just ordered a cheap Husqvarna chainsaw from Tractor Supply. Just something to bang around in the yard with when cleaning up small branches. Should be here in a week. Was on sale for 180 bucks. Normally 200. High prices? Seems fair to me.
Overall, there are some real clueless stupid ass mother fuckers in the USA that feel entitled and just vote for Liberals. I hope Trump continues to fuck these assholes deep and hard.
I’m reminded of a billboard outside of the Southeast Expressway in Boston during the Big Dig. The billboard said “Rome wasn’t built in a day. If it was, we would have hired their contractor.”
We’re definitely on the right track to correct the wrongs that were instituted over decades. DOGE can cut more. more illegal immigrants can be deported. More judges, mayors and police chiefs who obstruct justice can be tossed in the can for a minimum of 5-10 years and prohibited from real employment once they get released.
The problem I see is that Congress must codify Trump’s executive orders and policy changes. It’s once thing to cut USAID now but Congress must pass laws prohibiting this abusive spending arising from the ashes.
Congress must codify the changes, agreed.
However, many high level arrests, prosecution, and jail time for the traitors in govt would send a stronger signal. More, faster, harder. Put people in jail now.
Don, let’s use the word And in your sentiment. Get Congress to act AND the DOJ to act.
I don’t care about the spending, I care about the stealing.
When Trump cuts ALL taxation to the bone I’ll give him an “atta boy!”, but not one second sooner.
I’d like to see Trump follow through in eliminating the income tax. The country can run off of tariffs and consumption tax.
No income tax would be great for lower middle class and even upper working poor class as they would keep the money they earn through labor.
When the govt taxes labor it’s like partial slavery. Example a 10 percent income tax is like working for free for the govt 10 percent of the year, all so that the politicians can redistribute wealth to non working people.
Buying things is a choice. So while eliminating the income tax would mean some higher taxes when buying items, poor and middle class people buy less goods and services than poor and people can choose to only buy needed items. I would also exclude from consumption taxes food, water, clothing and home heating oil and gas.
I also have a question here – who will have the balls to cut the politicians pensions when they “retire” from butt fucking the American people, cuz that is an expense that needs to be wiped off the budget yesterday.
“Factories don’t just spring up overnight, in other words.” Thanks for pointing this out. It’s gonna’ take _years_ to build all these promised factories.
Years and consistency. If business fears that the next administration is going to jerk the rug out (think the Keystone pipeline), they’re not going to invest. They need consistency. Stability. That is why is is hugely important to turn what is so far executive action into legislation, so the next administration cannot just tear up the promises.
The problem is that turning this action into legislation is incredibly difficult. Republicans have razor thin majorities; they have to compromise because they cannot afford to lose any intraparty votes. In the Senate, Murkowski and Collins are not reliable Republican votes. In the House, the majority is likewise thin, and Massie is a wild card, demanding “no compromise.” No compromise means no legislation.
Meh, whistling past the graveyard. As long as he is getting economic advice from the extreme leftist Navarro, things will be mixed at best.