CNN: Huge Jump In Wages Due To GOP Tax Reform

[Weatherman2020]

Amazing what can happen so quickly when you take the boot heel of central planning and socialism off of the economy.

 

[Mac1958]

And for the record, corporate tax relief plays out in several ways besides wages.

They can pay off debt, they can increase capital expenditures, they can expand, they can buy, they can increase R&D.

So, when they grow because of those expenditures, they can hire more, too.

I know that's terribly fundamental business economics, but the obvious isn't always so obvious in politics.

Willful blindness 'n stuff.


.

 

[aaronleland]

It's from CNN. Fake news.

 

[Care4all]

The main reason the stock market fell dramatically today is because this good news for us, our wages rose higher than normal, 2.9% and they see this as an indicate for inflation...?

I don't really understand it all, can someone explain this to me on a kindergartner level, pretty please!

Does inflation mean that their interest rates for money, go higher?

 

[mudwhistle]

The main reason the stock market fell dramatically today is because this good news for us, our wages rose higher than normal, 2.9% and they see this as an indicate for inflation...?

I don't really understand it all, can someone explain this to me on a kindergartner level, pretty please!

Does inflation mean that their interest rates for money, go higher?

Some people call it a Friday sell-off.

 

[ColonelAngus]

The main reason the stock market fell dramatically today is because this good news for us, our wages rose higher than normal, 2.9% and they see this as an indicate for inflation...?

I don't really understand it all, can someone explain this to me on a kindergartner level, pretty please!

Does inflation mean that their interest rates for money, go higher?

Some people call it a Friday sell-off.

Winner Winner, Chicken Dinner.

 

[Care4all]

The main reason the stock market fell dramatically today is because this good news for us, our wages rose higher than normal, 2.9% and they see this as an indicate for inflation...?

I don't really understand it all, can someone explain this to me on a kindergartner level, pretty please!

Does inflation mean that their interest rates for money, go higher?

Some people call it a Friday sell-off.

is this the FIRST ''Friday Selloff'' under President Trump? And why now? Is there any rhyme or reason to a ''Friday Selloff''???

 

[dcbl]

W I N N I N G
I
N
N
I
N
G

 

[mudwhistle]

The main reason the stock market fell dramatically today is because this good news for us, our wages rose higher than normal, 2.9% and they see this as an indicate for inflation...?

I don't really understand it all, can someone explain this to me on a kindergartner level, pretty please!

Does inflation mean that their interest rates for money, go higher?

Some people call it a Friday sell-off.

is this the FIRST ''Friday Selloff'' under President Trump? And why now? Is there any rhyme or reason to a ''Friday Selloff''???

Because it's Friday.....and people started profit-taking.
It depends....if it continues on Monday it becomes a trend.....but I think people just wanted to sell some stock.
If you're hoping for a crash.....don't hold your breath.

 

[usmbguest5318]

Per CNN's reporting, wages increased not by 2.5%, but by 2.9%. CNN's reporter/commentator classifies that as a "huge jump." How "huge" is it?

• For a person who in 2014 had gross active/wage income of $45K/year ($3,750/month):
  • 2.5% increases yield:
    • 2015 income of $46,125 (~$3843/month)
    • 2016 income of $47,278.13 (~3940/month)
    • 2017 income of $48460.08 (~$4038/month)
  • The 2.9% jump for the first month of 2018 means that same worker would gross ~$4155 instead of $4139 -- $16 more per month than they would have were wage growth to have held steady at 2.5%.

Yes, economists will call that "huge" because $24B is a lot of money

• $16 x 12 x 125,000,000 = $24,000,000,000

From an economist's standpoint, that $24B and it's multiplier impact [1] is huge. From an individual's point of view, well, very few Americans are going to construe as material a 0.4% differential in the rate of wage increase they experience. At best, they'll say "well, more money is more money," which is very different from saying "I got a huge (or even merely decent) pay increase."



Note:

1. Individuals interested in calculating the multiplier effect impact of $24B injected into the U.S. economy may care to consult the following resources:
   • The two links immediately below contain the same content; the second link's exposition is far more concisely put than is the first one.
     • MPC and Multipliers
       
       • Anecdote that hadn't crossed my mind for decades: I once delivered effectively the same lecture as the one in the video above, although I used a different hypothetical MPC. On the exam, I offered a multiple choice question that asked students to calculate MPC, and explain why they chose the answer they did. One of the answer options was the same hypothetical MPC I used in my lecture. Believe it or not, I actually had students answer that they specified the MPC rate they did because, in my lecture, I said that is what MPC is. That semester was when I determined for sure that I didn't have the patience to be a teacher/professor.
     • Principles of Economics -- Deriving multipliers
   • NMSU: Income Multipliers in Economic Impact Analysis
     
   • Economic impact multipliers
     
   • Marginal Propensity to Consume in USA

 

[Tresha91203]

The main reason the stock market fell dramatically today is because this good news for us, our wages rose higher than normal, 2.9% and they see this as an indicate for inflation...?

I don't really understand it all, can someone explain this to me on a kindergartner level, pretty please!

Does inflation mean that their interest rates for money, go higher?

Yes, we should have inflation. We should have had it a long time ago. It is akin to putting an emergency tool back in our arsenal rather than in play. A healthy economy can handle that easily. With zero inflation, we lose a tactic/tool (reduce inflation) to stimulate. Ideally, you want all your emergency tools tucked away for emergencies, not in play when not needed (wasted). The trick is to take the lumps (bad PR) and to pull it off without hurting growth.

 

[Care4all]

The main reason the stock market fell dramatically today is because this good news for us, our wages rose higher than normal, 2.9% and they see this as an indicate for inflation...?

I don't really understand it all, can someone explain this to me on a kindergartner level, pretty please!

Does inflation mean that their interest rates for money, go higher?

Yes, we should have inflation. We should have had it a long time ago. It is akin to putting an emergency tool back in our arsenal rather than in play. A healthy economy can handle that easily. With zero inflation, we lose a tactic/tool (reduce inflation) to stimulate. Ideally, you want all your emergency tools tucked away for emergencies, not in play when not needed (wasted). The trick is to take the lumps (bad PR) and to pull it off without hurting growth.

THANK YOU so much Tresha, and that all made sense! even to me....!!!!

 

[Care4all]

Man oh man, Hannity is a real hoot!!! Just saw some of his hype! Holy Smokes!