Californians may still love the beautiful weather and beaches, but more and more they are fed up with the high housing costs and taxes and deciding to flee to lower-cost states such as Nevada, Arizona and Texas.
"There's nowhere in the United States that you can find better weather than here," said Dave Senser, who lives on a fixed income near San Luis Obispo, California, and now plans to move to Las Vegas. "Rents here are crazy, if you can find a place, and they're going to tax us to death. That's what it feels like. At least in Nevada they don't have a state income tax. And every little bit helps."
Senser, 65, who previously lived in the east San Francisco Bay region, said housing costs and gas prices are "significantly lower in Las Vegas. The government in the state of California isn't helping people like myself. That's why people are running out of this state now."
Three things likely sparked this manufacturing jobs spike.
First, eight years of the Obama Administration’s piling on regulation upon regulation, from labor rules, to the Clean Power Plan, to the implementation of ObamaCare, placed industry into a defensive crouch. Business leaders were fearful of investing capital, not knowing how the federal rules might capriciously change, thus wiping out their expected return on investment.
That defensiveness ended in November 2016 when the expectations of additional regulatory burdens under a prospective President Clinton vanished. Not coincidentally, manufacturing employment started its sustained upswing the very month of Krugman’s tweet.
Second, the Trump Administration’s deregulatory practice exceeded expectations, with red tape being cut at a faster clip than achieved under President Ronald Reagan 36 years earlier.
Third, with the Republican Congress, President Trump delivered on a major overhaul of the tax code, including a significant cut to business taxes as well as a change to the treatment of overseas profits that incentivized the repatriation of some $300 billion in the first quarter of 2018 out of what the Federal Reserve estimates is $1 trillion in multinational profits held abroad.
Whether this manufacturing jobs boom will continue is now largely dependent on the Trump Administration’s high-stakes trade stand-off with the People’s Republic of China.
The U.S. economy grew at a faster-than-expected rate in the third quarter as inflation was kept in check and consumer spending surged, according to data released by the Commerce Department on Friday.
Gross domestic product expanded by a 3.5 percent annual rate. Economists polled by Dow Jones expected the economy to expand by a 3.4 percent annual rate.
The department said the PCE price index, a key measure of inflation, increased by 1.6 percent last quarter, much less than the 2.2 percent increase expected by economists polled by StreetAccount.
President Donald Trump dropped something totally unexpected on Democrats and the mainstream media — “a very major tax cut for middle-income people” — while campaigning Saturday in Nevada.
“We are looking at putting in a very major tax cut for middle-income people,” Trump told reporters just before boarding Air Force One to return to the nation’s capital.
“And if we do that it will be, I would say, probably sometime just prior to November. We are going to be putting in, and are studying right now around the clock, a very major tax cut for middle income people.”
The new proposal would slash taxes “not for business at all, but for middle income people,” Trump continued. “The last one was for middle income taxpayers and for business, and now our businesses are now coming back because of it.”
The United States returned to the top spot as the most competitive country in the world for the first time since 2008 after it made the second highest overall gain from the previous year's ranking from the World Economic Forum.
The top five countries were the U.S., Singapore, Germany, Switzerland, and Japan — all of which saw their scores increase in 2017, The Wall Street Journal reported.
"Economic recovery is well underway, with the global economy projected to grow almost 4% in 2018 and 2019,” the report stated, adding that "recovery remains vulnerable to a range of risks and potential shocks."
The Daily Wire
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