- #1
GENIERE
Nothing!
From the pen of First Trust Advisors Chief Economist, Brian Wesbury re: the 2006 economy:
“…Many are also in denial about the underlying strength of the US economy. While some economic data has been weaker than expected, underneath the headlines, the economy remains robust. The housing market has fallen precipitously, but in reality has only returned to the trend that was in place for a decade before the Fed cut interest rates to absurdly low levels between 2002 and 2004. Housing is normalizing, not collapsing. Moreover, initial claims remain low and "core" durable goods orders are still rising at double-digit rates…”
“…This week's economic data is going to be hard for the pessimists to explain. Second quarter real GDP growth will be revised upwardly, consumption data will reflect 3.5% to 4.0% real growth in the third quarter, purchasing managers survey's will reflect continued expansion, and the August employment report is highly likely to accelerate from recent months. In the face of this data, denying a continued recovery will be harder than ever…”
"…Productivity bounces around from quarter to quarter, but nonfinancial corporate-sector productivity is up 4% at an annual rate in the past five years. This is why the economy is so resilient…."
A little more from the same source:
- Corporate profits are at an all-time high share of GDP
- Commercial and industrial loans are up at an annual rate of 15.3% so far this year, a level of growth not seen since the go-go Nineties.
- Excluding transportation, new orders for durable goods are up 9.6% at an annual rate in the first five months of 2006 while unfilled orders are up 12.8%.
- Private nonresidential construction is up 12.7% in the past year, and lodging construction (hotels) has surged 51%. All of this is offsetting the slowdown in housing starts.
-Industrial production jumped 0.8% in June: The U.S. manufacturing sector has never produced more "stuff."
Chris Edwards writing for the Cato Insitute:
“The nation's strong economic growth is creating a tax-revenue boom for the states. State tax revenues jumped 8.7 percent in 2004 and about 8 percent in 2005. About three-quarters of state governments had tax-revenue growth of 6 percent or more in 2005.”
Pamela M. Prah, Stateline.org Staff Writer
“…State tax collections rebounded from a slight downturn in late 2005 and saw solid growth in the first three months of 2006, according to a new report that shows 16 states with double-digit revenue growth...”
Edmond Andrews, New York Times, July 9, 2006
“… An unexpectedly steep rise in tax revenues from corporations and the wealthy is driving down the projected budget deficit this year …”
The NYT and liberals may think the tax revenue increases were unexpected but we ‘pubs’ remember and learn from history. Three presidents have delivered tax cuts since WW2, Johnson, Reagan, and Bush. Economic booms and increased tax revenues followed all cuts
...
From the pen of First Trust Advisors Chief Economist, Brian Wesbury re: the 2006 economy:
“…Many are also in denial about the underlying strength of the US economy. While some economic data has been weaker than expected, underneath the headlines, the economy remains robust. The housing market has fallen precipitously, but in reality has only returned to the trend that was in place for a decade before the Fed cut interest rates to absurdly low levels between 2002 and 2004. Housing is normalizing, not collapsing. Moreover, initial claims remain low and "core" durable goods orders are still rising at double-digit rates…”
“…This week's economic data is going to be hard for the pessimists to explain. Second quarter real GDP growth will be revised upwardly, consumption data will reflect 3.5% to 4.0% real growth in the third quarter, purchasing managers survey's will reflect continued expansion, and the August employment report is highly likely to accelerate from recent months. In the face of this data, denying a continued recovery will be harder than ever…”
"…Productivity bounces around from quarter to quarter, but nonfinancial corporate-sector productivity is up 4% at an annual rate in the past five years. This is why the economy is so resilient…."
A little more from the same source:
- Corporate profits are at an all-time high share of GDP
- Commercial and industrial loans are up at an annual rate of 15.3% so far this year, a level of growth not seen since the go-go Nineties.
- Excluding transportation, new orders for durable goods are up 9.6% at an annual rate in the first five months of 2006 while unfilled orders are up 12.8%.
- Private nonresidential construction is up 12.7% in the past year, and lodging construction (hotels) has surged 51%. All of this is offsetting the slowdown in housing starts.
-Industrial production jumped 0.8% in June: The U.S. manufacturing sector has never produced more "stuff."
Chris Edwards writing for the Cato Insitute:
“The nation's strong economic growth is creating a tax-revenue boom for the states. State tax revenues jumped 8.7 percent in 2004 and about 8 percent in 2005. About three-quarters of state governments had tax-revenue growth of 6 percent or more in 2005.”
Pamela M. Prah, Stateline.org Staff Writer
“…State tax collections rebounded from a slight downturn in late 2005 and saw solid growth in the first three months of 2006, according to a new report that shows 16 states with double-digit revenue growth...”
Edmond Andrews, New York Times, July 9, 2006
“… An unexpectedly steep rise in tax revenues from corporations and the wealthy is driving down the projected budget deficit this year …”
The NYT and liberals may think the tax revenue increases were unexpected but we ‘pubs’ remember and learn from history. Three presidents have delivered tax cuts since WW2, Johnson, Reagan, and Bush. Economic booms and increased tax revenues followed all cuts
...
). And I'm not inclined to going simply by choice soundbites selected from a bigger passage.