Federal Reserve Chairman Jerome Powell suffers from the same disease infecting all those on the board: the hubris that they really know what's best for the economy.
With the Fed likely to raise overnight bank lending rates by one quarter of one percent on Wednesday, observers are increasingly concerned that those increases may throttle Trump’s roaring economy just as it’s beginning to hit its stride.
This year’s Tax Freedom Day, which “represents how long Americans as a whole have to work in order to pay the nation’s tax burden,” falls on April 19 according to the Tax Foundation.
The Fed will make eight quarter-point rate hikes between now and the end of the year 2020 in order to stave off predicted inflation.
The impact of Apple’s repatriation of its overseas profit hoard of some $250 billion — which is expected to be massive — could be dwarfed if much of the about $2.5 trillion in profits that is still held overseas by American companies is repatriated as well.
“Did you see they're doing trickle-down again?” asked a buddy of mine, a Vietnam vet, the other day at lunch. “It doesn't work. It's just a con to give big tax cuts to the rich and the corporations while there's nothing for the average guy.” He sounded like a recent editorial in the New York Times, “The Republican Tax on the Future.”
Even the government’s best intentions usually result in unintended negative consequences, and the new minimum wage increases that went into effect on January 1 in 18 states and 19 localities are a prime example of that. The minimum wage hikes have resulted in massive layoffs and higher prices. Most recently, the national restaurant chain Red Robin has announced that it will be forced to eliminate busboys at all of its 570 restaurants to offset the labor increases resulting from the increased salary costs.