Data Points

Today, Tuesday October 16, 2018, the Utah Bull Moose Party (UBMP) completed its first of a series of four weekly KLO Talk Radio shows at 10AM.  The purpose is to inspire Utah voters to support the Utah Bull Moose Party as an intelligent alternative to the Democratic and Republican Parties.  In the lead-up to the November 6 elections, topics to be discussed will include the party platform, a report card of the Republican agenda, an assessment of the candidates for senate, and finally the candidate the Utah Bull Moose Party will vote for.

Interestingly, today the U.S. Stock Market rose 550 points, to 25,807, the best day for the DOW since March (https://www.msn.com/en-us/money/markets/dow-closes-nearly-550-points-higher-as-earnings-spark-a-rebound/ar-BBOrMNI?ocid=spartanntp).  Yet, at the same time, National Public Radio reported “Federal Deficit Jumps 17% As Tax Cuts Eat Into Government Revenue” (https://www.npr.org/2018/10/16/657790901/federal-deficit-jumps-17-percent-as-tax-cuts-eat-into-government-revenue).

With the stock market data points at all-time highs, corporations making robust profits, their tax obligation having been reduced from 35% to 21%, and unemployment at 50-year lows, what’s one to think?  Let the good times roll, right?  Yet, a lingering concern tugs at you wondering how we can sustain trillion dollar deficits.  Are we borrowing money and stimulating the economy, maybe overheating the economy, unnecessarily?  Afterall, isn’t the time to stimulate an economy using debt when we are entering a recessionary cycle, and not at the top of a Bull Market?  The optimist will tell you the growth in the business sector will more than offset the deficit – eventually.  The pessimist will suggest that we should control spending, save some for a rainy day, and pay down our debt.

The stakes are high and the risks in our current circumstances are not for the feint hearted.  Time will tell how this economic cycle plays out relative to our borrowing and spending policies.  I hope for the best, but I worry about the consequences of encumbering ourselves with the forthcoming growth in debt and how to pay it back.