A Nobel laureate makes the economic case for Joe Biden

[erpowers]

Snip

The economic case for Biden begins with the economic case against President Donald Trump. Consider Trump’s costly corporate tax cut. It did not deliver anything like the investment and growth he promised, and the main effect was to run up fiscal deficits in the first three years of his presidency.

Snip

First, Biden understands that in America there is still a crushing disparity between the wages of the seriously less-advantaged and those paid to middle-income people—and payments for single mothers do not change that.

Snip

Finally, Americans are living with the virtual stagnation of the economy since the early 1970s (interrupted for about a decade by the Information Revolution). This continuing malaise lies behind wage earners’ increased frustration over their relative standing in wage distribution—a sentiment that, more than anything else, accounted for Trump’s rise. There can be no question that a President Biden—unlike President Trump—would want to restore the economy to its former glory.

For all these reasons, it is vitally important that the people vote for the Biden-Harris ticket. Trump has gravely weakened the nation’s economy, while Biden has shown over his life that he cares about people’s chances for prosperity and rewarding lives—for achieving the American Dream.

https://www.marketwatch.com/story/a-nobel-laureate-makes-the-economic-case-for-joe-biden-11600781690

[soothsayer]

1. Like it

[Cha]

2. Bookmarked.. TY!

[Poiuyt]

3. For the life of me, I can't understand why people think Trump is good for the economy

[erpowers]

4. I Am With You

I also do not see why people think Trump would be better at handling the economy. I guess people have looked at the Stock Market and think that means he is doing a good job with the economy. I guess they do not realize that part of the reason the Stock Market kept going up during Trump's term was that the Federal Reserve was buying a large amount of stocks and bonds.

[Poiuyt]

5. I didn't know the Feds were doing that

[erpowers]

6. Has Not Been Reported Much In the Mainstream Media

Snip

In a matter of weeks, the steadily expanding US economy slipped into its worst recession in nearly a century. Tens of millions of Americans lost their jobs, spending froze, and credit health tanked. While the Fed's response began with its traditional financial-crisis playbook - pushing interest rates to the floor and buying Treasurys and mortgage-backed securities - a shift was brewing.

Then, on March 23, the monetary authority's role changed. The Fed announced it would begin buying corporate bonds for the first time in its 107-year history, offering aid for cash-strapped businesses large and small. That facility marked a paradigm shift to the central bank's code and separated the Fed from its originally intended role in the US economy.

Snip

Through quantitative easing programs from 2010 to 2015, the Fed's balance sheet roughly doubled to $4.5 trillion. It took until September 2019 to unwind about $800 billion from its balance sheet, yet the subsequent repo crisis and coronavirus pandemic undid four years of progress in a matter of weeks. From February 24 to April 27, the Fed added another $2.5 trillion to its balance sheet.

The race to pad markets resulted in "a buying spree of epic proportions," JPMorgan economists wrote in a Tuesday note. The central bank's purchases show no signs of stopping, with five of its nine lending facilities yet to begin operations. Experts expect the Fed's holdings to land between $7 trillion $10 trillion by the end of the year, dwarfing the expansion seen during the financial crisis.

https://markets.businessinsider.com/news/stocks/federal-reserve-corporate-bond-buying-balance-sheet-expansion-historic-role-2020-5-1029157427#

I do not recall seeing much about this issue on mainstream TV news media. I heard about this from listening to a market show on NPR and watching clips of the Thom Hartman Show on YouTube. You can find numerous articles if you do a google search.

[Poiuyt]

8. Thank you!

[jmbar2]

9. This is terrifying

I've been a small-scale stock swing trader for years. The distortion that all this excess capital is creating in the markets is grotesque. They are placing world economies at terrible risk of collapse by this wanton buying spree, pushing stock prices to stratospheric heights, just to create a short-term illusion of prosperity.

The market is very unstable already. I fear for the future.

[StClone]

7. Trump is building for a collapse.

The economic case for Biden begins with the economic case against President Donald Trump. Consider Trump’s costly corporate tax cut. It did not deliver anything like the investment and growth he promised, and the main effect was to run up fiscal deficits in the first three years of his presidency.

True but T-Wrecks's tax cut also put more wealth in the hands of the investor class which, and with no other place to park the unneeded excesses, then juices the Stock Market. The Market then takes on a life of its own, detached from our reality.

Hearing the magical solution for everything is a tax cut is like having a hammer and everything looks like a nail. Tax cuts defund public works which leads to destruction of the public resources then to privatization-deathly to the non-wealthy in society.