In his last year of office, President Bill Clinton called on Congress to make normal trade relations with China permanent. So legislation was introduced to the House on May 15, 2000 by Rep. William Reynolds Archer (R-Texas) with three co-sponsors — saying that permanent normal trade relations (PNTR) with China was a top priority, and was vital to the U.S. agriculture market (to gain access to a market with one-fifth of the world’s population).
The monthly Consumer Price Indexdropped -04% for December, the largest monthly drop since 2008 Once again it's all about falling oil prices. Gasoline prices declined the steepest since December 2008. Inflation with gas and food removed flat-lined and had no change from last month. CPI measures inflation, or price increases.
We've heard it so many times before: Tax reform. When the Democrats say it, it usually means raising taxes (mostly on the rich). When the Republicans say it, it almost always means cutting taxes (mostly for the rich).
The December 2014 Retail Sales report shows retail sales declined -0.9% for the month. As gasoline prices plunged, sales as gas stations dropped a whopping -6.5%. Holiday sales on the other hand, were up 4.0%. Retail sales have now increased 3.2% from a year ago. December retail sales was not just about gas prices as most categories had monthly declines.
Kansas Governor Sam Brownback had championed the largest tax cuts in the state's history, eliminating taxes on non-wage earnings for nearly 200,000 small businesses. Just like all Republicans these days, Brownback had made cutting taxes and shrinking government the centerpieces of his government. Now the great State of Kansas has a huge projected budget shortfall.
The World Bank has cut their global growth projections from 3.4% to 3.0% for 2015. In 2016 they predict global GDP of 3.3% and in 2017 the world bank believes the globe will have a 3.2% annual GDP. In seems plummeting oil prices are great for nations which import and horrific, of course for countries that export.
Here's Charles Krauthammer (the Fox News pundit) writing for the Washington Post -- "Some in Congress are talking about a 10- or 20-cent hike in the federal tax [on a gallon of gasoline] to use for infrastructure spending. Right idea, wrong policy. The hike should not be 10 cents but $1. And the proceeds should not be spent by, or even entrusted to, the government.
The December unemployment rate dropped on almost half a million more people considered not part of the labor force. The official unemployment rate is now 5.6%, a -0.2 drop from last month. The labor participation rate went back to 38 year record lows and is 62.7%. From a year ago, the number of people considered not in the labor force has increased by 1.2 million those considered employed grew by 2.7 million.
The U.S. November 2014 monthly trade deficit declined -7.7% from last month and now stands at -$39 billion. America still runs a surplus in services, now at $19.3 billion, but the goods deficit is still massive and this month was -$58.3 billion. This month's trade deficit reduction is due to less crude oil imports and lower oil prices.
Happy New Year From The Economic Populist! Another day, another year. We hope 2015 is finally the time of the middle class. Will finally wages increase, will jobs and careers recover? So far that has not been the case, although 2014 is when hope for U.S. workers glimmered on the horizon. We've survived the three biggest days to die in the United States, Christmas, Boxing day and New Years. Now an onslaught of Republicans will take over Congress, so we can be assured any legislation to help the U.S. middle class will not be enacted.
The December ISM Manufacturing Survey shows manufacturing is still expanding, abet at a slower pace than November. PMI dopped by -3.2 percentage points to 55.5%. New orders caused the overall decline and by themselves slid down -8.7 percentage points to go below the 60's level.
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