Wage growth well short of what was promised from tax reform

[siablo14]

So who here thinks that getting a tax cut should mean getting a raise at work?


Raise your hands. Qoute this post..




I wanna know who thinks they should get a raise at work because of tax cuts.

Raises hand***

School me, Adam Ali.

[1bad65]

That was mainly due to the runaway inflation at the time after we got off the gold standard.

Not sure about that.

We got off the gold standard in 1971. Inflation hit it's highest in 1980.

Carter actually did simething economists had previously said was impossible; he had interest rates and inflation both rising simultaneously.

Before Carter, that never happened.

I highly doubt we will ever see that again.

Hopefully not.

But if we elect another idiot Democrat President, and get a few years of D Congresses during that time, anything is possible, sadly.

People don't have money/savings unlike in decades past.

Sadly true.

I have no unsecured debt at all, and some money saved up. I'm a minority in that regard.

[siablo14]

Not sure about that.

We got off the gold standard in 1971. Inflation hit it's highest in 1980.

Carter actually did simething economists had previously said was impossible; he had interest rates and inflation both rising simultaneously.

Before Carter, that never happened.



Hopefully not.

But if we elect another idiot Democrat President, and get a few years of D Congresses during that time, anything is possible, sadly.



Sadly true.

I have no unsecured debt at all, and some money saved up. I'm a minority in that regard.

Red - Volcker raised the Fed Fun Rate to 20% to tackle the high inflation. He was appointed by carter and then re-appointed by Reagan and Volcker eventually got inflation under control by 1983.

It was also the expansionary policies in the 1960s that lead to high inflation in the 1970s.

[siablo14]

Not sure about that.

We got off the gold standard in 1971. Inflation hit it's highest in 1980.

Carter actually did simething economists had previously said was impossible; he had interest rates and inflation both rising simultaneously.

Before Carter, that never happened.



Hopefully not.

But if we elect another idiot Democrat President, and get a few years of D Congresses during that time, anything is possible, sadly.



Sadly true.

I have no unsecured debt at all, and some money saved up. I'm a minority in that regard.

Red - Volcker raised the Fed Fun Rate to 20% to tackle the high inflation. He was appointed by carter and then re-appointed by Reagan and Volcker eventually got inflation under control by 1983.

It was also the expansionary policies in the 1960s that lead to high inflation in the 1970s.

Brother JimRaynor, jump in this discussion.

[Tomjas]

Rates won't go up that quickly, thats a doomsday, worst case scenario.

They are going to slowly raise rates as needed. It will be incremental rises or just flat.

2 years from now we are not going to have 7% rates

I wouldn't bet on that as:

a. most forecasters are predicting a further 3 hikes this year which will take your average home loan above 5%;

b. growth forecasts indicate further increases in 2019;

c. gov't debt is basically out of control;

d. household debt to income ratios remain well above the long-term average and trending higher; and

e. US banks arent in great shape to withstand external shocks and regulators have just moved to reduce capital requirements ()

Fact is that interest rates have been at historic lows for years and the only way they're heading is up

BTW, this is not a shot at the US as other countries are in the same position

[Sugar Adam Ali]

Spot on, Adam, and Volcker was the Fed President and his number goal was to fight inflation that's why his Fed policies kept interest rate high.

Thanks siablo

[Sugar Adam Ali]

Raises hand***

School me, Adam Ali.

Why do you think getting a tax cut, would also get you a raise at work?

Let’s start there

[Sugar Adam Ali]

Not sure about that.

We got off the gold standard in 1971. Inflation hit it's highest in 1980.

Carter actually did simething economists had previously said was impossible; he had interest rates and inflation both rising simultaneously.

Before Carter, that never happened.



Hopefully not.

But if we elect another idiot Democrat President, and get a few years of D Congresses during that time, anything is possible, sadly.



Sadly true.

I have no unsecured debt at all, and some money saved up. I'm a minority in that regard.

Yeah inflation got really bad at the tail end of the 70s, but it all built up from getting off the gold standard, plus the oil crisis of the 70s.

After Great Depression, we basically had the economy figured out with private enterprises and union/workers rights.

Had wealth plus a strong middle/working class.

But from the 70s on, it’s been all downhill, one drip at a time.

[Sugar Adam Ali]

I wouldn't bet on that as:

a. most forecasters are predicting a further 3 hikes this year which will take your average home loan above 5%;

b. growth forecasts indicate further increases in 2019;

c. gov't debt is basically out of control;

d. household debt to income ratios remain well above the long-term average and trending higher; and

e. US banks arent in great shape to withstand external shocks and regulators have just moved to reduce capital requirements ()

Fact is that interest rates have been at historic lows for years and the only way they're heading is up

BTW, this is not a shot at the US as other countries are in the same position

I agree on some points but not others.


Banks are extremely healthy,,, Best shape they have been in history, Jpm and BAC are killing it, C isn’t far behind.

Yes rate hikes will happen but it’s not jumping from 2.8% to 5% in 12 months..
These hikes have been going on for awhile but they are minuscule. Like going from 2.8% to 2.85%.

If they jump up to 5% the economy will crumble.

12 months from now, the rate will be slightly over 3%..


It will be slow n steady increases every quarter or so until we see a slowdown and then it will stay flat.

[siablo14]

Why do you think getting a tax cut, would also get you a raise at work?

Let’s start there

Let's see and keep it simple. Lower tax bills so company keeps more of the profit. They can afford to pay employee more.