Re: [Salon] Leading War Criminal Benjamin Netanyahu Will Visit Donald Trump

Thanks. Pat. Two of my article are relevant 

And


Warren Coats
1211 S Eads St. Apt. 2101
Arlington VA 22202
http://wcoats.blog/  http://works.bepress.com/warren_coats/ https://twitter.com/wcoats2

On Jan 31, 2025, at 2:58 PM, horne.jp@verizon.net wrote:

31jan25 – Alexandria
 
To which I would add that external deficits are not subsidies to our trading partners. More fundamentally, our external deficits (current account measure, not simply the trade deficit) reflect inadequate U.S. savings. 
 
Because our private consumption expenditure remains so elevated (67-68% of GDP, far above other developed countries), our national savings rate (household, corporate and government) remains inadequate for investment. (Investment must equal saving is a basic economic identity.) In the 3Q24, U.S. gross saving was 17.0% of GDP vs. 24.9% in 1965, as private consumption expenditure rose from 58% to 68%. 
 
The lack of domestic saving means we must rely on the inflow of foreign capital to finance our external deficit. If that slows because of increased foreign wariness of chaotic U.S. policies, then U.S. interest rates will have to rise to attract enough domestic capital to finance the deficit.
 
Our fiscal deficit also reflects the fact that tax revenues are too low. Taxation of all types at all levels, plus Social Security, amounted to 25.2% of GDP in 2023, vs. 33.9% for the rest of the OECD. As our country ages, non-inflationary growth potential slows and our social spending needs grow, the deficit will grow. Yet our new regime seems determined to cut taxes further, especially for the well-to-do. They seem to ignore the fact that deficits add to debt which boost the interest burden.
 
AI will increase productivity and GDP growth potential but the employment bell curve will turn sharply pyramidal as he jobless base widens dramatically because much of the population will not be competent for the new jobs being created by AI. The pointy part of the pyramid curve will rise sharply as this inequality climbs. Taking care of the growing base of “unemployables” will be a political hot potato. Trump, Musk & Co. should beware of a MAGA rebellion.
 
Paul
 
From: Salon <salon-bounces@listserve.com> On Behalf Of Warren Coats via Salon
Sent: Friday, January 31, 2025 1:38 PM
To: Chas Freeman <cwfresidence@gmail.com>
Cc: Chas Freeman <salon@listserve.com>; Pat Mulloy <pamulloy@aol.com>
Subject: Re: [Salon] Leading War Criminal Benjamin Netanyahu Will Visit Donald Trump
 
Pat,
 
As you can see from the St Louis Fed chart, manufacturing output in the US is at an all time high. Manufacturing employment is down because of increased worker productivity--a good thing. We do import more manufactured goods than earlier. Should we, as Biden and Trump do, insist (subsidize) making them here? We have full employment so that would not be possible without pulling workers away from what they now are doing. If the government must pay (subsidize) to get the private sector to build the factories here rather than buying the output about, it is because the current mix is more profitable, i.e. subsidizing production here is less efficient and thus will lower our over all income. 
 
Of couse on the export side, part of our exports are fiscal debt (China and others help finance our debt). The needs to be reduced for several obvious reasons.
 
 
Warren Coats
1211 S Eads St. Apt. 2101
Arlington VA 22202
http://wcoats.blog/  http://works.bepress.com/warren_coats/ https://twitter.com/wcoats2

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