Reckless and rapid cuts without a plan are bad for economy

Editor:

“Owning the libs” was more important – still may be – than looking at other news sources.

The only sure things are that total US Government payroll is only 4% of a “payroll efficient” budget and the claimed savings numbers do not add up. In 2018, 5,000 jobs were created in steel and 75,000 were lost in other sectors. Telling the CBO to insert a zero (0) as the cost of tax cuts is fraudulent accounting.

In high school you learn the first principle of prosperous capitalism is knowing enough to efficiently plan and project.

We all see that things have gone at breakneck speed and there have been so many reversals and contradictions that no one can predict where we are headed or may end up. Patchwork, hit and miss, is bad for business.

At the international level no one talks about the fact our large trade deficit is in large part offset by equally large corporate inflows of foreign investment. (Our budget deficits are not directly trade related; they are simply a question of who is going to pay and if it’s by income, sales, or property tax.)

No one talks about where we will pull people from to get back to 50% globally devoted to producing goods producing from our current 12%. The motor for job creation and economic revitalization is far more involved than getting into simple tit for tat spats.

At the national level no one is talking about the fact our corporate board rooms are locking up. Unless you are in the top 10% in line for tax cuts, their not knowing how to prepare can hurt everyone equally.

Companies do not know where they are going to buy raw materials and parts, which country will build their own plants or stop buying from us, if and in which country our companies should build.

Our companies do not know if we will continue to do business with the world’s rich counties or turn to poor autocracies and their puny markets. They need to see the detailed plan with rules of the road (the oil) to function or the motor seizes up.

With these huge uncertainties, US economic contraction and labor layoffs are what libs and red hats, no matter their situation, should fear.

Prices, consumer sentiment numbers, and the stock market, all say the economic check engine light is on.

As for the other issues believe what you want but the information is out there. But it’s hard to ignore the pocket book.

Conrad F. Cropsey

Albion