America’s poor have suffered tremendously over the past 14 months. Now comes the real pain. Inflation rose at its fastest pace in 12 years during April, per the U.S. Department of Labor. The Consumer Price Index was up 4.2 percent from a year earlier. Per CNBC, the “increase in the annual headline CPI rate was the fastest since September 2008, while the monthly gain in core inflation was the largest since 1981.” Just over one year ago oil producers had to pay their customers to take delivery of crude oil due to the massive drop-off in travel driven by the
In a recent appearance on Fox News, supply-side economist Arthur Laffer was asked to give his assessment of the global economy after a week of market turmoil due to tariffs and currency devaluation from China. Laffer does not view the United States as having an immediate risk of recession, but he warned that the rest of the world is not doing well economically and this is weighing heavily on the U.S. as well. Laffer then elaborated on what he views as the most worrying signal for global growth: The indicator I see that is a problem, that tells me that
As President Trump is finding out this year, House Democrats have been an enormous roadblock to his America First agenda. House Speaker Nancy Pelosi has not only stalled immigration reform and infrastructure talks, she’s also joined the conspiracy choir in hurling insults at the President long after his exoneration from charges of Russian collusion by the Mueller report. Unfortunately for Pelosi, according to recent reports, she will be unable to stop the next big policy achievement from the White House. President Trump may soon completely bypass Congress to deliver massive tax cuts that would add rocket fuel to the U.S.
Today, gold surged to a six-year high following signals from the Federal Reserve that rate cuts could be coming as soon as next month. While some believe that a more dovish Fed would be bullish for economic growth, the recent spike in gold prices offers a more cautionary note. RealClearMarkets editor John Tamny explains: To paraphrase the classical economic thinkers whom supply siders have historically (and rather wisely) sided with, gold is the commodity least influenced by outside influences. Precisely because there’s so much gold stock versus new discoveries of the yellow metal, its price is impressively stable. It’s no
Last week, President Trump told Bloomberg News that he is considering indexing capital gains to inflation. If the President follows through with this plan, his timing really couldn’t be better. This free market policy change should send market sentiment soaring right before the midterm election. I have previously written that indexing capital gains to inflation would be “the single-most pro-growth policy that stands a shot at being enacted this year.” Why? Because President Trump doesn’t need to go through Congress in order to accomplish this — he just needs to sign an executive order directed to Treasury Secretary Steve Mnuchin.
While much of the attention in Washington D.C. has turned to the GOP’s “Tax Cut 2.0” blueprint, yesterday The New York Times reported that a “Tax Cut 1.5” may be in the works. According to the story, the Trump administration is considering a unilateral move to index capital gains to inflation. As I have written before, indexing capital gains to inflation would be a huge move to turbocharge economic growth. Currently, when individuals invest in stocks (without using a tax-exempt vehicle like a 401k) or real estate, they are subject to real capital gains taxes on fake gains. This is
The stock market has been jittery recently amid trade war fears and the possibility of more government regulation for tech companies such as Facebook and Amazon. With the recent market turbulence, is there any hope that the Dow can shatter its all-time high of 26,616 this year? Short answer: Yes! In fact, if President Trump takes a page from “Improbable Success Productions” Chairman Richard Rahn, Dow 27,000 may be just around the corner. Writing for the Washington Times, Richard Rahn made the case for one big idea to turbocharge the economy — protect capital gains from inflation. As Rahn wrote:
The Trump giveth and the Trump taketh? During a private meeting with lawmakers last week, President Trump signaled that he would be open to a 25 cent per gallon increase to the federal gas tax. If your car has a 16 gallon gas tank (as many do), this would cost you an extra four dollars every time you fill up your car – and gasoline prices are already rising. While a 25 cent per gallon tax may not seem like a lot of money, Strategas research found that, if enacted, “60% of the individual tax cut savings in 2018 would be wiped