Trump's economic plan working

[k9bfriender]

@Damuri_Ajashi

If expected returns in an economy go up, a lot of marginal businesses suddenly become profitable. Those businesses compete for commercial space and rents go up. Similarly, if profitability generally goes up, you also have increased demand for labor. Whether that increased demand leads to significant increases in wages depends on what the labor supply looks like.

Employers are going to do whatever they can to keep wages down but they are competing with one another for resources and if increased demand makes the resource becomes scarce enough, they will bid up the price.

And that is all about the economy doing better, holding to the trend that was set in motion most of a decade ago.

Has nothing to do with a tax cut that only decreases taxes on profits. You need to remember, businesses do not pay taxes on the cost of doing business, they only pay taxes on their profit.

So cutting taxes on profits will not make a business go from unprofitable to profitable, it will not increase their profit margin, it will only decrease the taxes they pay on the profits they are already making.

American employers have been holding the line on American wages for almost a decade and it doesn’t take an economist to see that cutting corporate taxes in half will increase corporate profitability and the demand for labor

You are right, an economist is not going to see that. It will not increase the profits of a corporation, but rather, just decrease the taxes that they have to pay on those profits, and it will not affect the demand for labor at all.

What an economist would see that there was a steady decline in unemployment over the last several years. And when that unemployment hit the point where it really can’t go any lower, wages started going up as businesses needed to start bidding up wages to compete for workers, rather than the other way around.

[BigT]

I also simply want to point out that this is not Trump’s economic policy. It is a Republican policy, through and through. It is not what Trump ran on. It is not what Trump said he would do. It is what Republicans have been trying to do for years before Trump even got involved.