I have talked before about the signs of growth in our economy. Since the election, the small to midsized companies I deal with have seen good times.They have full order books, and are giving raises to keep skilled employees, hiring new ones, replacing the aged truck fleets and production equipment they have run the wheels off for the last ten years.
Their employees are spending on new cars and buying health insurance for their families.
I just talked to a Ford dealer who had the last hi roof extended length commercial Ford Transit van in the Pacific Northwest, all the rest were sold as soon as they rolled off the train.
Manufacturers are adding products and a metal fab place I know is adding a third shift to handle all the production coming back from China.
It is rewarding to see the ‘experts’ who were assuming a service economy , driven by monetary policy was the future, be so horribly wrong. May the Lord save us from experts.
Just as the President took a different view of the electorate from the political experts , and decided the 65% working class and lower middle was a “Massively underserved market”, his economic team, most of them bruised knuckle folks from the real economy have as big a revelation about economic growth instead of the Globaloney Never Right True Cons who have sold us down the river for decades.
Anyone who has run a debt laden enterprise has figured out that cost cutting your way out is the least likely to succeed. The most likely one is to grow the revenue side and the gross profit line by doing something very different.
The US can grow, and one way to fix our entitlement issue is to make as many people wealthy with a solid 401k or IRA as possible. Then you can restructure entitlements.
The USA is moving from a high energy cost importer, depressed wage, low value adding economy with a wealthy intellectual property sector to a low energy cost exporter, high wage high value added economy with a wealthy IP sector.
Amazing what that can do to your economic experts.
Sundance covers this well below.
“Business are building out their capacity. Big and Small corporations and manufacturers are building manufacturing facilities, plants and expanding capacity. Small companies are hiring and expanding. Small manufacturers of U.S. goods and services are expanding to become mid-size manufacturers.
This is Main Street expansion, something that has not happened in 40 to 60 years.
This specific type of economic expansion is why most economists using Wall Street analytic models cannot accurately measure or predict growth. The capital investment is not attached to U.S. Federal Reserve monetary policy; it is attached to the consumer. It might sound weird but that’s what’s happening.
The Wall Street economic engine, fueled by monetary policy, is disconnected from the Main Street economic engine, fueled by consumer spending and demand for goods and services.
The paper economy is impacted directly by monetary policy; but the main street economy, actual goods, manufactured goods, is driven by consumer demand, wages, earnings etc.”