Economy Slowing

There are a number of signs that the economic recovery that started under the last administration and continued under the current one is starting to slow.

Oil prices are up, new jobs are down, housing starts are down, interest rates are up.

In any trend there will be deviations, so it is possibly just a minor slowing.

It isn't the rapid acceleration the supply siders expected from the tax cuts since it seems that as predicted the companies and wealthy decided to pocket the extra money or use it for share buybacks.

Generally most capital expansion is financed, its a better way to match expected cash flow to outlays, since a purchase requires a large initial expenditure.

Money has a time value and spending up front for future returns is a tough math problem for people who do that sort of thing.  Ideally a new investment pays for itself as quickly as possible and then creates a positive cash flow for its remaining life.

When interest rates go up, capital investment goes down.  Of course it doesn't dry up immediately but it doesn't expand overall for sure.

The other negative that may have a significant impact on the economy is the trade issues under the current administration.  The balance of trade is one of those things that over time fixes itself.  Of course given the size of the American market, there is a lot more opportunity to sell items here for most of our trading partners.

It corrects itself over time as they become more prosperous and have more money to buy our goods.

The negative impact of this is actually a fairly minor one, unless of course you are a victim, meaning your job moved elsewhere or your business can't compete.  It is a sad situation, but every economic development has both winners and losers, as those who adapt faster win and those who can't lose.

Trying to turn the clock back doesn't work, as it introduces inefficiency which costs everybody more for less.

The solution is to learn how to compete and develop cutting edge technology while expanding trade and opportunities.

Or we can do the opposite.