Saturday, August 04, 2018

Why is Trump fighting the trade war?

Why is Trump fighting the trade war?
"Why is Trump fighting the trade war?  
Here's why.
Critics of Trump's trade policies think everything is okay if we don't do anything.  
The chart below shows that everything is not okay if we don't do anything.
This is a chart of capital spending in the U.S. from 1968 through to the present.  
It is a straightforward presentation of monthly data from the Commerce Department.  
There is nothing clever, nothing tricky about this presentation or about the time frame chosen.  
The Commerce Department started this series in 1968.  
It superseded another series on capital spending.

Source: U.S. Department of Commerce.
Why is this chart important?
It is a death sentence for America.
...Why is this growth in capital spending important?  
Even in our increasingly service-oriented economy, it is capital spending – the stock of capital equipment – that sustains our standard of living.  
Healthy capital spending is critical to – really identical with – a thriving economy.  
This is why the flat capital spending that America has experienced since 2000 is so grave a condition.
...The only person in public life who understands this chart is Donald Trump.  
...Among other things, this chart is the opioid epidemic – the despair created by permanent unemployment.  
The lack of capital investment is what has created the regions where people have dropped out of the workforce and thus are no longer counted as being in it..."
Much here, read all!!

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