Tag Archives: infrastructure spending

Trump spurs sharp jump in optimism of top U.S. CEOs

maga

Funny how that happens when you put a businessman in the White House instead of a community organizer.

From Seattle Times: The nation’s top chief executives like what they’re seeing and hearing from President Donald Trump and his fellow Republicans, according to survey results released Tuesday by the Business Roundtable.

The economic expectations of the heads of the nation’s largest companies jumped in the first quarter by the most in more than seven years amid optimism about corporate tax cuts, reduced regulations and a boost in infrastructure spending promised by Trump and congressional leaders, the trade group found.

“As these results confirm, business confidence and optimism have increased dramatically,” said Jamie Dimon, chief executive of JPMorgan Chase & Co. and this year’s chairman of the Business Roundtable.

The group, composed of the heads of the largest U.S. companies, said its quarterly CEO Economic Outlook Index shot up to 93.3 from 74.2 in the fourth quarter. It was the biggest increase since the third quarter of 2009 and the highest level in nearly three years.

The index is based on projections for sales, capital spending and hiring over the next six months, and ranges from -50 to 150, with a reading above 50 indicating the economy is expanding.

Since the survey began in 2002, the average has been 79.8. The first quarter was the first time the index has been above its historical average in nearly two years.

The increased optimism from major corporate chieftains echoed recent surveys showing small-business owners and consumers also are feeling much better about the economy since Trump’s election.

“Clearly CEOs are very positive about prospects for hiring, sales and investment,” said Joshua Bolten, president of the Business Roundtable.  “Their view of the overall economy has also brightened slightly.”

The 141 CEOs surveyed between Feb. 8 and March 1 projected that the U.S. economy would expand 2.2 percent this year. That was up from a 2 percent prediction in December but still well below the 3 to 4 percent annual growth Trump said he could produce. (Well, give him some time…he’s only been in office two months!)

The optimism might also have something to do with this:

From Gateway Pundit: “On January 20th, the day of President Trump’s Inauguration, the US Debt stood at $19,947 billion. As of March 16th, the most recent date for US debt reporting, the US Debt stands at $19,846 billion. President Trump has cut the US Debt burden by over $100 billion and 0.5% in the first two months since his inauguration!

DCG

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Obama Recyles 2009’s Failed Stimulus as New Jobs Plan

This Just In!

The big jobs plan Skippy announced yesterday is merely a recycled version of his failed 2009 stimulus package. Call it Stimulus 2.0, if you will.

~Eowyn

He knows even less about how to throw a ball

Obama’s “Jobs” Plan: Nothing New

by – Heritage Foundation – Sept. 8, 2011

So much for “bold” and “new.” What we heard from the President last night was nothing more than a revamped and slightly smaller version of his failed 2009 stimulus package. His “new” plan sounded just like the prior stimulus, with few exceptions and little hope of actually working. Key points included:

  1. Tax credits to businesses who hire the unemployed
  2. More infrastructure spending
  3. State aid to delay public sector layoffs
  4. An extension of the payroll tax credit
  5. An extension of unemployment benefits

Other than giving tax credits to businesses who hire the unemployed, how is this plan any different than the 2009 stimulus? Aside from finding more creative ways to spend money we do not have, no. And none of these ideas will actually create the jobs President Obama and his allies claim.

 Infrastructure spending, as we saw in 2009, is only temporary. When the money runs out or the construction is complete, the jobs disappear – such is the nature of construction, it does not last forever. We cannot base our recovery on temporary make-work spending, unless President Obama wants to turn our nation’s infrastructure into the Winchester Mystery House.

State aid to delay public sector layoffs was tried before, and guess what? When the money ran out, the layoff went forward as planned. It simply prolonged the recession and allowed state and local governments to postpone much needed decisions on how they spend money.

Extending the payroll tax credit and unemployment benefits will not create jobs and are not new ideas, they’re already in place. The payroll tax credit is small (according to President Obama it put $1,000 into the pockets of middle-class Americans this year, which amounts to just $86 dollars a month) and based off the faulty Keynesian belief that government can spur demand and create jobs. It’s hardly stimulating. Numerous studies have shown that extending unemployment benefits actually extend unemployment, as those people are less motivated to look for work than if there were no benefits.

So far the only “new” idea – tax credits to businesses who hire the unemployed – is a failed relapse from the 1970s. The scheme could lead to companies hiring a lesser qualified unemployed worker for the tax credit, as opposed to a slightly more qualified worker who is currently employed.

The fact of the matter is that the first stimulus didn’t work. President Obama said it would “save or create more than 3.5 million jobs,” but 1.7 million jobs have been lost since it was enacted. Trying the exact same idea all over again will do no more good for the economy than the last stimulus and only drive up federal spending and debt.

President Obama would be wise to try a different direction. Hey, maybe something like getting off of business’ backs by removing burdensome regulations and taxes? Just a thought.