2017-12-09 08:37:00 Sat ET
treasury deficit debt employment inflation interest rate macrofinance fiscal stimulus economic growth fiscal budget public finance treasury bond treasury yield sovereign debt sovereign wealth fund tax cuts government expenditures
Michael Bloomberg, former NYC mayor and media entrepreneur, criticizes that the Trump administration's tax reform is a trillion dollar blunder because it adds another $1.5 trillion federal budget deficit to government debt over the next few years. The corporate tax cuts may restrict the U.S. government's ability to invest in education and infrastructure, may render health insurance more expensive, and may have no impact on real wage growth. Harvard public finance professor Martin Feldstein, however, says this tax overhaul is worth its costs because U.S. corporations will use their tax cuts to boost real wages and capex investments, and these firms will repatriate $2.5 trillion offshore cash to invest in job creation, manufacturing automation, and R&D innovation. In line with some economists' op-ed articles and blog posts on the probable effect of the Trump corporate tax cuts on real wage growth, a firm invests up to the point that the after-tax return on its labor and capital investments equates the return that investors require to allow the firm to expand its factor inputs. As the firm receives income tax breaks, it finances the purchase of new machines, plants, and computers. These capital expenditures make the typical worker more productive. Then the firm wants to hire more workers to run the new machines and computers etc. As a result, the typical firm raises real wages until the economy restores its steady state. Hence, tax cuts can effectively boost real wage growth ceteris paribus.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2023-02-28 11:30:00 Tuesday ET

The Biden Inflation Reduction Act is central to modern world capitalism. As of 2022-2023, global inflation has gradually declined from the peak of 9.8% d
2023-01-09 10:31:00 Monday ET

Response to USPTO fintech patent protection As of early-January 2023, the U.S. Patent and Trademark Office (USPTO) has approved our U.S. utility patent
2019-02-05 10:32:00 Tuesday ET

President Trump remains optimistic about the Sino-American trade war resolution of both trade deficit eradication and tech transfer enforcement. Trump now s
2018-01-02 12:39:00 Tuesday ET

Goldman Sachs takes a $5 billion net income hit that results from its offshore cash repatriation under the new Trump tax law. This income hit reflects 10%-1
2017-05-07 06:39:00 Sunday ET

While the original five-factor asset pricing model arises from a quasi-lifetime of top empirical research by Nobel Laureate Eugene Fama and his long-time co
2025-10-07 10:30:00 Tuesday ET

Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fund