Essential Economics for Politicians

https://patriotpost.us/articles/57162-san-franciscos-rank-number-two

The root of San Francisco’s mess can be tied directly to decades of Democrats enacting their leftist policies. San Francisco has the highest rent in the world, coming in at an average of $3,500 a month. The median home price is a whopping $1.5 million, an amount that only 12% of residents can afford.

And the biggest contributor to this obscenely high cost of living is onerous laws. Columnist Rachel Alexander reports, “Zoning regulations and building codes have increased the cost of housing. Height restrictions waste valuable space. In much of the city, it is illegal to build anything taller than 40 feet. One resident built a ‘pod’ in his friend’s living room in order to obtain affordable rent, but the city found out and made him move out. Due to the high cost of living, a family making $117,400 annually is considered 'low income.‘ A family making $73,300 is 'very low income.’ The minimum wage is $15 an hour, but it’s not enough to rent a two-bedroom apartment. In order to live comfortably in San Francisco, an annual salary must be at least $110,000.”

Exorbitantly high cost of living and yet the city is increasingly becoming a slum. No wonder residents are leaving the city in droves. No U.S. city lost more residents in the last quarter of 2017 than did San Francisco. Here is yet another sad example of a long-time Democrat-controlled city whose residents are suffering — and smelling — the consequences.
 
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Nowhere close to our daily gubment mandated gouging in Cali.

This was tweeted in South Carolina as an example of "gouging". lol.
 
OCTOBER 1, 2018
New York Times finally admits how Obama screwed up the economy in 2016
By Thomas Lifson
Calling it "The Most Important Least-Noticed Economic Event of the Decade," the New York Times finally acknowledges the degree to which Barack Obama's policies were strangling business investment in his final year in office. During the presidential campaign, acknowledging this "mini recession that many missed" was taboo, of course. And among those "many" who "least-noticed" it was the New York Times. So why is the Times admitting it now? Why, of course, to denigrate the achievements of President Trump in rescuing the economy from the miasma Obama inflicted on it with taxes and regulatory policies.

Neil Irwin writes:

[In 2015 and 2016, t]here was a sharp slowdown in business investment, caused by an interrelated weakening in emerging markets, a drop in the price of oil and other commodities, and a run-up in the value of the dollar.

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The pain was confined mostly to the energy and agricultural sectors and to the portions of the manufacturing economy that supply them with equipment. Overall economic growth slowed but remained in positive territory. The national unemployment rate kept falling. Anyone who didn't work in energy, agriculture or manufacturing could be forgiven for not noticing it at all.

Even though the Times and its readers were able to disregard the suffering in the oil patch, on farms, and in the Rust Belt manufacturing strongholds, candidate Trump actively campaigned with these constituencies and won the presidency on his promise to revive them from the suffering inflicted upon them. He knew; he acted; and after he won, he revived them. As Instapundit's Glenn Reynolds quips:

It wasn't invisible – Trump saw it – they just didn't report it because they didn't want to make Obama look bad or hurt Hillary's prospects.
 
Bruddah IZ said:
Simple Supply and demand.
Click to expand...
Thanks to the success of Quantitative Easing which did not blow up the world economy and lead to economic growth and the financial markets being incredibly solid. The current economic expansion is one of the longest in history.
 
Booter said:
Thanks to the success of Quantitative Easing which did not blow up the world economy and lead to economic growth and the financial markets being incredibly solid. The current economic expansion is one of the longest in history.
Click to expand...
I could have done more with the 10 trillion the Kenyan stole from us.
 
The No. 1 Lesson of the Lehman Collapse: QE Worked.
Doomsayers predicted that the Fed’s bond-buying spree would wreck the U.S. economy. Instead, it made the recovery possible.

The Fed ended QE in 2014, increased interest rates seven times since 2015 and last year began reducing its $4 trillion balance sheet as debt acquired during the bond-buying program matured. The Fed’s preferred measure of inflation, the Personal Consumption Expenditures Core Price Index, now sits at an annualized rate of 1.98 percent. At the same time, the big and small companies included in the Russell 3000 index saw their net debt to Ebitda ratio — or total debt minus cash divided by earnings before interest, taxes, depreciation and amortization — diminished to the lowest on record in 2015. It remains 2.2 percentage points below the Russell 3000 debt ratio of 2000.

It’s doubtful that the economy’s robust health would have occurred without QE. But the academics, billionaires and politicians who denounced the policy as ruinous in a public letter with 23 signatures in 2010 still haven’t acknowledged QE’s role in the recovery and subsequent prosperity. The group, led by Stanford University Professor John Taylor, billionaire hedge fund manager Paul Singer and U.S. House Speaker John Boehner, predicted that the monetary stimulus would provoke runaway inflation, damage the dollar’s special role as the world’s reserve currency and send bond prices plummeting. They were wrong.

The recovery from the death of Lehman proved to be the most dynamic since 1980, with the rebound making the U.S. the only developed economy to attain record GDP by 2015, according to data compiled by Bloomberg. The dollar rallied 20 percent, the most of any developed economy’s currency during the past nine years.

After the crash of 1929, it took 25 years for the stock market to recover. The S&P 500, which lost 47 percent of its value in the bear market from September 2008 to March 2009, was at a record by 2013 and is up 327 percent from the recession low, according to data compiled by Bloomberg.

https://www.bloomberg.com/view/articles/2018-09-13/lehman-collapse-lesson-qe-worked
 
Booter said:
The No. 1 Lesson of the Lehman Collapse: QE Worked.
Doomsayers predicted that the Fed’s bond-buying spree would wreck the U.S. economy. Instead, it made the recovery possible.

The Fed ended QE in 2014, increased interest rates seven times since 2015 and last year began reducing its $4 trillion balance sheet as debt acquired during the bond-buying program matured. The Fed’s preferred measure of inflation, the Personal Consumption Expenditures Core Price Index, now sits at an annualized rate of 1.98 percent. At the same time, the big and small companies included in the Russell 3000 index saw their net debt to Ebitda ratio — or total debt minus cash divided by earnings before interest, taxes, depreciation and amortization — diminished to the lowest on record in 2015. It remains 2.2 percentage points below the Russell 3000 debt ratio of 2000.

It’s doubtful that the economy’s robust health would have occurred without QE. But the academics, billionaires and politicians who denounced the policy as ruinous in a public letter with 23 signatures in 2010 still haven’t acknowledged QE’s role in the recovery and subsequent prosperity. The group, led by Stanford University Professor John Taylor, billionaire hedge fund manager Paul Singer and U.S. House Speaker John Boehner, predicted that the monetary stimulus would provoke runaway inflation, damage the dollar’s special role as the world’s reserve currency and send bond prices plummeting. They were wrong.

The recovery from the death of Lehman proved to be the most dynamic since 1980, with the rebound making the U.S. the only developed economy to attain record GDP by 2015, according to data compiled by Bloomberg. The dollar rallied 20 percent, the most of any developed economy’s currency during the past nine years.

After the crash of 1929, it took 25 years for the stock market to recover. The S&P 500, which lost 47 percent of its value in the bear market from September 2008 to March 2009, was at a record by 2013 and is up 327 percent from the recession low, according to data compiled by Bloomberg.

https://www.bloomberg.com/view/articles/2018-09-13/lehman-collapse-lesson-qe-worked
Click to expand...
Bloomberg?
 
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