July Retail Sales Growth: 6.4% “Unexpected”, “Well Beyond Expectations”, “well beyond what experts predicted”…

Remember that 2016 conversation about retail inflation, Q2 wage growth, durable goods spending and non-durable goods expenditures…  Well, in a growing economy; a bigly expanding economy; with wages actually increasing as an authentic outcome of expanded hiring and jobs, jobs, jobs… in conjunction with lowered tax rates…. you get more money in your pocket.

This natural Main Street dynamic leads to increased consumer spending, specifically in the retail sectors influenced by who?… Oh, yeah, those middle-class economic beneficiaries of all the above.

The expert financial pundits are shocked, shocked I tell you… shocked; when, all of a sudden, the convergence of MAGAnomic Main Street policies delivers results.  DUH!

The Commerce Department – Economic and Statistics Administration – released the figures from July 2018 retail sales today (full pdf available here), showing an incredibly strong .5% increase in spending in July, bringing a 6.4% increase year-over-year;  and the results have dropped the jaws of the “experts”:

“Economists polled by Reuters had forecast retail sales nudging up 0.1 percent in July.” (link)

“Retail spending in the United States increased a half-percent during the month of July — well beyond what experts predicted.” (link)

“U.S. retail sales rose more than expected in July as households boosted purchases of motor vehicles and clothing, suggesting the economy remained strong” (link)

(pdf link)

With expanded jobs available; higher wages and the highest workforce in the history of the country currently; and with more U.S. workers re-entering the workforce again; and with expanded optimism and opportunity; the retail sector is a natural benefactor.

Notice the drop in the “sporting goods, hobby, etc.” sector?  Americans love to work… when you’re working, you’re earning…. when you’re earning you ain’t playing as much etc.

Retail sales growth is directly related to the middle-class.  Retail store volume is directly related to the wealth of the middle class.  Build a strong Main Street and you simultaneously build a strong, financially secure, middle-class.  It is a self-fulfilling economic prophecy; this is common sense.

Remember, two-thirds of our GDP, and the subsequent economic growth measured by GDP growth, is directly influenced by retail sales.  The more goods Americans purchase, the higher our GDP growth in the making, manufacturing, distribution and selling of those goods.   This is the Main Street growth cycle dynamic never discussed when all of the economic emphasis is on a service-driven economy (Wall Street).

BIG PICTURE – As a direct result of President Trump’s multifaceted economic strategy, manufacturing companies are having to look at TCO which is “Total Cost of Ownership”. You see, President Trump is not only approaching manufacturing growth policy from the trade-agreement and investment side, his policies also approach the larger impacts on raw material, energy and labor.

This multi-pronged policy approach forces companies to look at transportation and location costs of manufacturing. In combination with more favorable tax rates; if domestic costs of material and energy drop, in addition to drops in regulatory and compliance costs of operating the business, the total operating cost differences drop dramatically.

This means labor and transportation costs become a larger part of the consideration in “where” to manufacture. All of these costs contribute to the TCO. Transportation costs are very expensive on durable goods imported. If the durable goods are made domestically, the transportation costs per unit shipped drop significantly. The TCO analysis then further reduces to looking at labor.

U.S. Labor is more expensive, yes. However, if material costs, energy costs, regulatory costs, taxes and transportation costs are part of the TCO equation – then higher labor costs can be offset by the previously mentioned savings.

… […] Chinese wages have been rising by about 15% a year since 2000. As a result, the Chinese labor cost in dollars per unit of output is now about four times what it was in 2000. We estimate that about 25% of what is now offshored would come back if companies quantified the total cost. These products would generally have characteristics such as high freight cost vs. labor cost, frequent design changes, volatility in demand, intellectual property risk, and regulatory and compliance requirements. (link)

For two years CTH has repeatedly stated that under Trump’s proposals “total costs” drop so dramatically, that off-shored manufacturing is no longer the best play. We are seeing that shake out right now. For the first time in 30 years companies are reviewing the TCO of products and finding less and less financial reasons for off-shore manufacturing.

Their response?….  Well, we need more workers !!

Winnamins baby… moar winnamins.

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This entry was posted in Auto Sector, Big Government, Big Stupid Government, Donald Trump, Economy, Election 2018, media bias, President Trump, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

191 Responses to July Retail Sales Growth: 6.4% “Unexpected”, “Well Beyond Expectations”, “well beyond what experts predicted”…

  1. RedBallExpress says:

    I guess Harley Davidson can just ride off into the sunset.

    Liked by 14 people

    • mopar2016 says:

      Harley ain’t going nowhere. Maybe they’ll build bicycles in Europe.
      Americans aren’t going to buy foreign made Harley Davidson motorcycles.
      Built in the US is a big selling point.

      Liked by 23 people

      • Harley Davidson Company has made motorcycles overseas for sale in overseas markets. American riders buy and ride a Harley made here. Foreigners that have the big bucks buy Harleys that are made in America. That size (and sound) is a status symbol overseas that not all foreigners can afford. Tariff or no tariffs.Harley has been doing this for years.

        Liked by 3 people

        • snailmailtrucker says:

          Bullshit….I have owned a few Harleys over the last 40 years and I will never Buy another one….and many of my Brother Riders won’t either !

          Liked by 2 people

          • “bullshit….” LOL sounds like you don’t like HD Motorcycles. Your problem. It ‘s a free country, and you can ride any brand you choose. I’m just stating that HD has built overseas for their tastes, not yours or mine in the USA. Harley, Indian, Build-Your-Own…your opinion and choice in a free market ( there’s an ass to fit every seat). Ford and VW build cars overseas for overseas customers. BMW builds in Greenville,S.C. for American buyers, but we ALL don’t have to like BMW.

            Liked by 1 person

      • Kokanee says:

        Because I ride motorcycles I pay attention to announcements from MC companies. HD announced they were moving manufacturing overseas way before POTUS did tariffs. They did a CYA and said it was because of Trump’s tariffs. What a bunch of back stabbing wussie pencil neck business geeks that should not be running HD.

        Liked by 15 people

    • fleporeblog says:

      They can take all the illegals that will be running to the border with them once our President pushes this out at the end of September. You are going to see a mass exodus like you have never seen before.

      The great part of this clip is the fact he doesn’t need Congress to vote on this!

      Liked by 24 people

      • Curry Worsham says:

        That’s more heartless than PUTTING CHILDREN IN CAGES!!!!

        Liked by 7 people

      • Critical Mass says:

        Interesting that immigration lawyers are more forthcoming and specific with actual numbers of immigrants – 20M as mentioned in this clip – when it suits their freeloading agenda. Lawyers, immigration activists. churches and other organisations who offer immigrant support services – all those groups who make up the immigration lobby industry – are the real culprits in the immigration scam.

        The notion that unfettered immigration in itself is good for the economy of a country is a fraud and needs to be exposed as such. Perhaps a writer like Sundance can apply a clear sighted and analytical approach to all the factors at play in what is fundamentally a black market economy.

        Liked by 13 people

        • fleporeblog says:

          Your absolutely right! That jumped out to me as well. I guess the 11 million number wasn’t needed by them this time around.

          Liked by 11 people

          • Critical Mass says:

            To me, there is nothing inherently wrong with legal immigration. As long as immigration policies are calibrated to the needs of the host country and as long as those immigrants are willing to be self-reliant and give their primary allegiance to the laws and spirit of the host country, it can be a good thing.

            There is an urgent need for studies on mass immigration from an objective, balanced and informed perspective. Such studies would also need to look at how much damage it does to immigrants themselves and the countries from which they come.

            Mass immigration is a giant blood-sucking business. And the term “illegal immigrants” is a brazen misnomer. “Aliens” is also a euphemism. They should be more accurately called “invaders” when entering another country en masse and without permission. And those who enable and manage it are engaged in the crime of human trafficking.

            Liked by 5 people

            • auntiefran413 says:

              I’ve been referring to these freeloaders as criminal invaders for a long, long time…and truly believe that that is a far more accurate term. I’m not into PC!

              Liked by 5 people

            • Bud Klatsch says:

              That is the way it worked for years. Immigrants had to have sponsors that took responsibility for them so as to not make them wards of the state.

              Liked by 2 people

            • fleporeblog says:

              Your absolutely right on all fronts!

              Like

            • Jacqueline Taylor Robson says:

              My DH is an immigrant (legal) and to get here, he had to have a sponsor promising him a job, and he had to have a medical, pay a lot of money, fingerprints and a background check. His sponsor also had to promise that for a number of years he wouldn’t claim any welfare at all! They just need to enforce the laws that are already on the books.

              Liked by 2 people

          • Jo says:

            Back in the early 90s when I immigrated to the USA, the number was thought to be around 25M & I lived in California – so I figured that it was about right.
            Apparently after the GFC in 2008 – millions went back south, because there was no work.
            I believe the 20M number – I lived on Long Island for 5 years.

            Liked by 1 person

    • RedBallExpress says:

      I know Harley will be around for a while. However, they have experienced steep sales declines and I don’t attribute it to the new Polaris Indian taking market share. Motorcycles, souped up cars, trucks, military vehicles & tractors are a dying hobby for gray haired idiots like me. The smart phone crowd could care less.

      Liked by 9 people

      • JasonD says:

        Yeah, likely true, dat.

        Liked by 2 people

      • Turranos says:

        RedBall, you are right. Harley “rode” the great market for a very long time but ask yourself how many millennials are going to be riding Harleys. Their market is plummeting fast. Anything that they do now will only wind up being a band aid solution. Nothing can bring back the market that they once had. That’s just the facts.

        I just spoke to a friend of mine that has been to the Sturgis Rally for the past 20 years in South Dakota. He had just returned and I asked him how it was. He said “That’s my last one and I won’t be going back.” I asked him why and he said “Those guys and gals just need to hang it up.” The whole thing just looked bizarre to him and he was done. He saw it with new eyes, this time around.

        By the way, he is not over the hill by any means. He will still be ridin’ his Harley and his ATV but he will not be going back to Sturgis.

        I am heading back up to South Dakota this fall for a while, been playing in Utah all summer.

        Liked by 1 person

      • G. Combs says:

        RedBallExpress,

        Not in my neighborhood! We have mud races down the street and motorcycle clubs and bike clubs use our road all the time. Gotta watch out for the four wheelers too, not to mention the guy across the street and I driving our equines.

        Liked by 2 people

        • webgirlpdx says:

          Oldest motorcycle dealership here in Portland area, still run by the family is not far from us. Old family friends….business has been booming for the past two years.. Off road dirt bikes, street, ATV, watercraft. People are still buying all the toys…Honda,Yamaha, etc. big time.

          Like

      • boogywstew says:

        After all these years Harley is just getting around to making motorcycles I might buy. I like 650 – 750 Cafe Racer style twins but even still the new HD Street models need to lose 50 – 100 lbs.

        Like

      • Robert Smith says:

        It’s a dying hobby not for lack of interest but by pricing itself away from the smart phone crowd.

        Liked by 1 person

    • Kenji says:

      Let’s just say that IF my all-time favorite electronics manufacturer, McIntosh … an ALL-American Co. still designinging and manufacturing (by hand) in Binghamton NY … moved their operations OUT of the country … they’d be DEAD to me and I’d sell all my equipment. Not even the foreign purchase and ownership of McIntosh changed the way they have done business since the 1940’s

      https://www.mcintoshlabs.com/

      BTW … some of their equipment costs more than the most fully loaded Harley.

      Like

  2. TheTorch says:

    Just amazing what President Trump is doing for the USA economy.

    Winning Winning Winning.

    and this is really just the start – there could be more tax cuts on the horizon, along with more regulation cuts, and when those trade deals are renegotiated the GDP will soar.

    🙂

    Liked by 15 people

    • fleporeblog says:

      I had to slap Morning Schmoe around a little earlier today with his BS tweet that Barry deserves all the credit!

      Liked by 20 people

      • Dekester says:

        Thanks again Flep,

        Your tenacity and kick a** attitude cheers me up no end.

        God bless PDJT.

        Liked by 14 people

      • JasonD says:

        People suffering from TDS are not capable of seeing reason, since they are,ipso facto, deranged. But I admire you for soldiering on, cause every mind you can free from that delusional state is a win for the truth.

        Liked by 8 people

        • Curry Worsham says:

          I think Mr. and Mrs. Schmoe are also in a state of panic – like their masters.
          It’s in his eyes.
          They’ve tried everything and then tried it again and nothing works.
          They lie and lie and lie.
          But they can’t stop him.

          Liked by 7 people

      • SwampRatTerrier says:

        Flep next time tell ol’ Joe “Just like you’re responsible for keeping your wife satisfied – NOT.” LoL

        Liked by 2 people

      • oncefiredbrass says:

        Any Idiot knows that killing all Obutthead’s onerous Regulations was the first thing to juice the Economy..then following with the Tax Cuts, especially the Corporate cuts sent things flying! I am a small business owner, in my particular case it was the Medical Device Tax being killed. I sell Refurbished EKG machines that come back from drug studies from Big Pharma.When Obama was in office I had to keep bringing them in even though they were hard to sell or lose my contracts. Literally after POTUS killed that they started flying out the door at a pace we couldn’t keep up and still can’t! I can’t even find workers to help get them packed and out the door. It is literally amazing how stifling a Regulation can be like the Medical Device Tax! You have to ask yourself why if the whole Obamacare Debacle was to lower medical costs, why tax the tools that doctors need the most to actually lower prices and catch illness early rather later when it becomes really expensive? We were actually looking into bankruptcy under Obama , now with Trump we can’t even get the product out the door fast enough! A lot of our customers are Clinics and Doctors offices that can’t afford new and under Obama couldn’t afford Refurbished! Now thousands of people are able to have tests that will catch heart problems earlier. The Big Bonus is a lot of College Students in Medical School can also afford to buy them and be proficient in using them before heading out in the real world. I say “God Bless POTUS”! I am one small story out of the many after he cut all the Regulations and actually got Government off every ones back!

        Liked by 9 people

      • David A says:

        Flep, also always good to nail them on the O manufacturing quote, those jobs not coming back, and P Trumps manufacturing jobs number, as well as a reminder that under the zero, people were leaving the work force in record numbers, and now coming back.

        Liked by 2 people

  3. TheLastDemocrat says:

    These business journalists have a bizarre auto-correct that adds “unexpected” to any good economic news.

    Liked by 17 people

    • billrla says:

      TheLastDemocrat: Journalism 101: If it ain’t unexpected, it ain’t news.

      Liked by 3 people

    • mimbler says:

      When it is a Republican administration. With dems it is the bad news that is unexpected.

      Liked by 4 people

    • fleporeblog says:

      This graph by Charles Payne explains what we are seeing beautifully! Americans have money in their pockets once again.

      Liked by 8 people

      • Martin says:

        I’m in payments and electronic marketing and engagement tech, and our service industry clients are busy- plumbers, electrical, hvac, landscaping, construction and maintenance. A fairly young electrical firm told me yesterday they didn’t NEED any more customers, as they’re so busy it would strain turnaround. There aren’t enough people with skills, to add, especially for industrial. That will drive vocational training, for sure.

        Retailers are having good months and catching up. I think durables are enjoying the biggest rise, and retail and other services will get busier soon, at least in my region. It’s heartening to see SMBs putting their growth funds into preparation, which means the optimism ratings are real. And right now is a GREAT time to do what I do. The startup I’m partnered with could not have chosen better timing. MAGA!

        Liked by 10 people

        • fleporeblog says:

          Congrats Martin! Thank You 🙏 for sharing that fantastic anecdotal.

          Like

        • L. Gee says:

          You mention that retail will pick up soon. My bet is it already has. Many people who start new jobs–and even those who are just moving from one job to another–need new clothes! Plus, you have people who have more money this year, so they are able to buy more–or better–school clothes for their kids.

          And one more thing: I don’t watch much teevee, but in the last month during the few times I’ve watched, I’ve seen two new ads for companies selling high-end fashion products!!

          Like

      • Sylvia Avery says:

        I love Charles Payne. He gets it.

        I heard yesterday that the business journo types are SHOCKED, simply SHOCKED to discover that our tax revenue has shot up, as well. What? How can this be??????? Well, because so many more people are working there is more money being kicked into the federal coffers. Income tax revenue.

        Now, if only the legislature could curb the wanton spending we might actually stand a chance of financial stability in time.

        But I can’t believe these fools are so surprised. Same thing happened under Reagan’s tax cuts, and even JFK’s tax cuts. So why so shocked? Shrug. But it is all good news to me! MAGA!

        Liked by 5 people

    • MAJA says:

      They and all the economists used the same word when the economy crashed. Imagine that! It sounds like they still don’t know anything.

      Liked by 1 person

  4. TheLastDemocrat says:

    If Obama’s term was a huge set-up for a huge economic recovery, to manifest only when he went out of office, then why is all of this economic growth “unexpected?”

    Liked by 35 people

  5. parteagirl says:

    Leverage! I love the way Trump also sees a strong economy as a negotiating tool.

    Liked by 13 people

  6. rf121 says:

    Waiting on the Flep Report……

    Liked by 5 people

  7. these the same *experts* that said the world economy would crash if trump was elected? AHAHAHAHA‼️‼️

    Liked by 9 people

  8. Becky Pacey says:

    Makes me wonder if the Seniors will get a nice raise in the SS next year?

    Liked by 9 people

  9. kinthenorthwest says:

    Just love winning bet liberals are imploding ….
    TY Sundance

    Liked by 8 people

    • Curry Worsham says:

      Nancy Pelosi: Unemployment Benefits “Creates Jobs”

      “Unemployment insurance, the economists tell us, return $2 for every $1 that is put out there for unemployment insurance,”

      “It injects demand into the economy, it creates jobs to help reduce the deficit,” .

      “History shows” tax cuts do not create jobs.”.

      Liked by 3 people

      • kinthenorthwest says:

        LOL–Has Pelosi said anything in the last decade or two that makes any sense LOL

        Liked by 9 people

      • H.R. says:

        Goodness Gracious Sake’s Alive!

        I believe Nancy’s last brain cell left the building and forgot to turn off the lights. The light’s still shining but there is nobody home.

        Liked by 3 people

      • covfefe999 says:

        Jacking up welfare and benefits to the unemployed means more money coming out of the pockets of working Americans who are then forced to spend less because they have less money, that’s how I see it.

        I know I’ve mentioned this before … when Obama was still in office there was a sign at a CTA station that proudly announced that something like 80% of Obamacare recipients received subsidies. And this was supposed to be a good thing. What it really meant was that Obamacare was so unaffordable that 80% couldn’t afford it without help, and then the other 20% would have to cover for them.

        Grrrrrr……

        Liked by 1 person

      • Kenji says:

        O.M.G. the fact that a SITTING, longtime, member of Congress can be so shockingly DUMB and IGNORANT and willfully deceptive … reveals that our country is NOT being led by the “Best and the Brightest” … but by dull-witted ghouls.

        Liked by 1 person

        • Jacqueline Taylor Robson says:

          Just like That Ocasio-Cortez gal. They are both like glowsticks. You want to shake the he!!out of them until the lights come on!

          Like

  10. Bendix says:

    I just saw another business advertising a wage that doesn’t sound like much, but is way better than many have seen for unskilled labor in a long time.
    A car wash, twelve bucks an hour plus tips.
    Granted, minimum wage is now ten something, but still.
    Things are definiely picking up.

    Liked by 7 people

    • Curry Worsham says:

      Actually the Federal minimum wage is still $7.25.
      But it’s a job seeker’s market.
      That car wash job was probably only a little better than $7.25 a few years ago.

      Liked by 1 person

      • Reloader says:

        Unless you’re over 50 and looking for a job. No responses whatsoever to job searches.

        Liked by 2 people

        • Joemama says:

          Yes, age discrimination is quite prevalent, but I see signs that it is getting better. My company wouldn’t hire anyone over the age of 30 two years ago and is now beginning to show signs of willingness to hire experienced people, since they are so desperate for talent.

          Like

        • Rhoda R says:

          I’m in the same boat.

          Like

        • frances says:

          Could I suggest you set up an LLC and offer your services online? You could recruit others like yourself with similar skills. You then can write off all your costs of your job search, possibly reach a larger group of prospective employers and recruiters. Good luck!

          Like

    • Kenji says:

      One of the largest forms of my “charitable giving” has been … generous tipping. I worked those jobs starting out. I KNOW what ONE generous tip can do for those entry-level workers. And I get NO tax deduction for my generous GIVING.

      The “lowly” Mexican who does a diligent job finishing the parts missed by the automated car wash gets well tipped. His paltry wage explodes when I drive through. And my Vietnamese hair cutter who I have used for 30years receives a 100% tip with every haircut (she doesn’t charge enough for the custom work she does on my hair).

      Like

      • DCP says:

        Yeah and there is another benefit that you will get. You don’t have to be extravagant, just tip a little more. If everyone else tips 20%, tip 25%. My GF and I fly weekly, 100 times a year. We both use wheelchairs. We each tip $5.00 per ride. Most people don’t tip and those that do tip $1.00 or $2.00, $3.00 max. I am not playing MR GotRocks, but I have worked low-paying jobs before. The work-load is not necessarily reflected in the pay. The chair pushers in the three airports we go through most frequently all know us and will RUN across the gate area to get to us when we arrive at the airport or when we deplane. We go through Atlanta Hartsfield EVERY WEEK. This is the busiest airport in the world and it frankly sucks. I always request wheelchairs when I make the reservation and there are NEVER any wheelchairs waiting. A couple of weeks ago, a young man gave me his phone number and now I text him whenever we are going through Atlanta. He is waiting at the gate for us, every time. When we got to Atlanta today, there were 9 people waiting for wheelchairs, and other than our guy, there were no chairs. He was waiting with two chairs (he pushes us both at the same time) and we were gone to our gate while everyone was still trying to figure out what was going on.

        Like

  11. Dave Sanderson says:

    A less obvious benefit is that collection of state and local SALES TAXES will be “unexpectedly” higher from all of this retail activity. So, the overall economy is doing well, manufacturing is doing well, consumers are doing well, retail is doing well, and state & local sales tax collections are also doing well …and it’s ALL THANKS TO TRUMPANOMICS!

    MAGA!!! … 6 more years! …6 more years! … SIX! MORE! YEARS!

    Liked by 11 people

    • Kenji says:

      My little CA town was incorporated as a “no property tax city”. So NONE of the MASSIVE $$$ property taxes collected from my UPPER-upper middle class community returns to our city. It ALL stays at the County (Contra Costa). The PRIMARY source of my towns income is from sales tax subvention. Sales taxes collected within the city limits return (fractionally) back to our city.

      Funny thing … NOT a single one of our elected officials would DARE praise Trump for our windfall Retail Sales revenue. Nor would our bike-to-work, granola-munching, City Manager who is paid in excess of $300k/year. (poor public servants … riiiiight?)

      Liked by 1 person

  12. Stephen Reed says:

    Outsourcing would be best reversed by high permanent tariffs on foreign goods and services.

    There is no fixing free trade …

    I, for one, hope that our president comes to that point of view – starting with steel and aluminum then move to protect the entire auto manufacturing supply chain.

    Like

  13. Stephen Reed says:

    Outsourcing would be best reversed by high permanent tariffs on foreign goods and services.

    There is no fixing free trade …

    I, for one, hope that our president comes to that point of view – starting with steel and aluminum then move to protect the entire auto manufacturing supply chain.

    Liked by 2 people

  14. Bendix says:

    Maybe the drop in sporting goods is because we quit going to Dick’s.

    Liked by 25 people

    • trapper says:

      I have a different theory. In order to test it you have to track the sales of Rubbermaid tubs, construction plastic, duct tape, and Bibles. My theory is that people have stopped burying tubs containing firearms, 2,000 rounds of ammo, and a Bible. Sales of those items should have dropped off, and the drop in “sporting goods” would be attributable to drops in ammo sales as people work through their ammo stockpiles at the range.

      Liked by 2 people

      • Deplorable_Infidel says:

        I hope those people buried their stash with plenty of moisture-absorbing desiccants. Otherwise they could be due to some unpleasantness when unearthing their cache in the future. It is easily available from many mail order places specifically for burying firearms and ammo. Personally, I would invest in a container specifically made for burial of valuables, unless I lived in the arid southwest USA. BTW – I would also employ silicone sealant before applying duct tape. I am not sure of the long term durability of duct tape underground.

        Like

    • SwampRatTerrier says:

      And stopped eating Whataburger……..

      Like

  15. Earl & Pearl Tourist says:

    If the roaring economy can start replenishing the Social Security piggy bank while paying down the debt, the USA would ROAR for another 240 years.

    Liked by 5 people

  16. FL_GUY says:

    Wow, people get jobs, they have money and they buy stuff!!!! I’m shocked. Who wouda Thunk? Obviously not these so-call economists. They need to upgrade their brain trust by hiring Forrest Cump.

    Liked by 10 people

  17. Deplorable_Infidel says:

    “U.S. Labor is more expensive, yes. However, if material costs, energy costs, regulatory costs, taxes and transportation costs are part of the TCO equation – then higher labor costs can be offset by the previously mentioned savings.”

    Another important factor that U.S. companies found out about the hard way is the poor quality control/lax work ethic of foreign workers. Many companies found out that the cost of having to scrap inferior products that did not pass QC offset the savings in inexpensive labor.

    Sometimes foreign companies just were unable to produce a satisfactory product no matter how hard they tried. I am thinking specifically of a little switch in the keys that activated the old IBM mechanical keyboards. I will try and find a link in my bookmarks.

    Liked by 4 people

    • Deplorable_Infidel says:

      “Sometimes foreign companies just were unable to produce a satisfactory product no matter how hard they tried. ”

      I did not have that bookmarked. I am not wasting time looking for it:

      https://duckduckgo.com/?q=ibm+mechanical+keyboard&t=hi&atb=v124-5&ia=images

      https://clickykeyboards.com/

      “….Buckling spring key-switch keyboards are technically superior because they provide visual , tactile and auditory feedback. Rapid typing occurs as a result of one finger completing a key stroke, while another finger is preparing the subsequent key sequence, and other fingers are preparing to convert the user’s thoughts into action. Each key has an individual weight to it, and experienced typists can apply sufficient, but not extra, force to achieve their goal….”

      It seems one of their fans has been successful:

      https://www.neowin.net/news/ibms-model-f-mechanical-keyboard-is-being-resurrected

      https://www.extremetech.com/computing/252014-ibm-model-f-keyboard-returns-30-year-hiatus

      “….IBM produced Model F keyboards starting in 1981, but just a few years later it had mostly switched to the cheaper Model M. At the heart of any mechanical keyboard is the key switch, and the Model F introduced the world to the buckling spring design. The new Model F keyboards are being produced by one Joe Strandberg, who spent about $100,000 setting up a factory in China to produce the keyboards. They have the same design as the original Model F, right down to the buckling spring switch design….”

      Liked by 1 person

    • mr.piddles says:

      “Another important factor that U.S. companies found out about the hard way is the poor quality control/lax work ethic of foreign workers. Many companies found out that the cost of having to scrap inferior products that did not pass QC offset the savings in inexpensive labor.”

      Not only QC, but the materials used as well as intrinsic design flaws. Counting ounces leads to cutting corners. No more chromed high-impact plastic, please. No more overlooked (or are they?) stress points, please. No more crap, please.

      Case in point: I have a computer bag from, I’m going to say, 2010. It’s a Brenthaven “ProStyle 15” laptop bag. It’s a nice bag, very durable, etc. if you have a thing for laptop bags. About six months ago I figured I needed another bag of the same make and model. I have a bit of a problem with collecting computers. Anyhoo, I order the “same” bag off of Amazon. Well, it ain’t the same bag. It looks the same, and has the same design, same pockets, etc., but there are noticeable differences in material used. For example, there’s a little pocket in the front with a zipper, lined with a nice microfiber for your iDevices. New model: lined with a cheap vinyl like material. Old model: the main pocket is nice and cushy, plenty of padding… new model: noticeably less padding, and cheaper lining. Old model: big pocket in front with two chunky zippers .. new model: a SINGLE flimsy zipper which zips, obviously, in one direction at a time — annoying if you just want to pop it open to reach in and grab something quick like. Not to mention that the zipper handles in general will break over years of use (they’re made out of a rubberized plastic or whatever)… chunky is better than flimsy. Whowouldathought. These are small things, but taken together they optimize to me the degradation of products over just the past 15-20 years. For what? To save a few pennies? To lighten the per-unit weight by half an ounce? I won’t even begin to tell you about the $100 Grohe kitchen faucet sprayer with the nylon single point of failure, the countless frustrating lighting fixtures Made in You-Know-Where, the FREAKING child-safe electrical outlets that don’t actually allow you to insert a FREAKING plug, etc. etc. etc. I mean the list is long. Humbug, I say.

      Liked by 10 people

    • mr.piddles says:

      You want keyboards? How ’bout Apple’s latest “butterfly key” fiasco. $2500 laptop, broken space key. Stuck keys? Non-responsive keys? So sorry. Hope you bought the extended warranty.

      https://appleinsider.com/articles/18/04/30/2016-macbook-pro-butterfly-keyboards-failing-twice-as-frequently-as-older-models

      Solution: well… it’s a little ridiculous…

      “The keyboard isn’t replaceable by itself. Break one key switch, and you need to replace the whole assembly, consisting of the keyboard, the battery, and the upper case metal surrounding the keyboard and Thunderbolt 3 ports.”

      As of now they’ve “addressed” the design flaw(s). How a company could overlook such a critical design flaw in such a critical component to begin with is beyond may comprehension.

      Oh, it gets better. The design “fix” for the original problem: “The keyboard has a membrane under the keycaps to prevent debris from entering the butterfly mechanism”.

      https://www.macrumors.com/2018/07/19/apple-confirms-2018-mbp-keyboard-prevents-debris/

      Cuz you know silicon membranes never wear out after a few years of extensive use.

      Just… enough… enough already.

      Liked by 1 person

    • Robert Smith says:

      https://www.pckeyboard.com/

      Still made in the USA by the same company that made them before.

      Like

    • G. Combs says:

      ‘….Many companies found out that the cost of having to scrap inferior products that did not pass QC offset the savings in inexpensive labor…..”

      How about Weaver Leather LLC?
      About five years ago we bought a dozen stainless steel ‘pony proof’ snaps at over $10.00 each. Hubby backspliced them into good EXPENSIVE Nylon rope. when we started using them almost ALL of them FAILED due to poor QC on the ball bearings.

      We called Weaver and got a shrug. They did not give a rat’s behind that their crap had failed and the attitude was the CUSTOMER was responsible for QC and had to send the item back for replacement. (SNARL…) Unfortunately their competitor MAST was driven out of business by the EPA. I still use the Mast snaps I bought thirty years ago and just replace the rope.

      Like

  18. covfefe999 says:

    You’re welcome, America. 🙂

    Liked by 3 people

  19. 335blues says:

    ‘EXPERTS”.
    “You keep using that word. I do not think it means what you think it means.” ~Inigo Montoya.

    They call themselves ‘experts’. Their friends call them ‘experts’.
    Funny, the average American citizen does not call them ‘experts’.
    The ‘experts’ throw things out to see if they will stick.
    If they do, their friends pat them on the back and call them ‘experts’.
    If they do not, their friends pat them on the back, and tell them ‘better luck next time’.
    They average American citizen pays them no mind.

    Liked by 8 people

    • Ditch Mitch says:

      SD, great point on the rec and sporting good drop off. When there is work to be done Americans will do the work. Even if it means a little less play.

      As for retail, Varney has been chanting for a week now that the retail ice age is over. I thought he was hyping it (as he appears to do sometimes) but with these numbers it was an understatement.

      More evidence, which I posted on another of SD’s economic reports is about the malls in my area. ~20% vacency rate 2009-2016. ~0% presently. Also 2 malls in my area are currently doing facelifts.

      MAGA —> KAG

      Liked by 7 people

      • It’s an anomaly. Essentially, many of those items are ‘retail’ items. I don’t put too much stock in explanations that do not come with accompanying data. If you look at the chart you can see that for all of the quarters surveyed, ‘Sporting goods’ etc has consistently been in the negative even when other areas have been in the positive. An equally good explanation is that more people are spending time on the internet posting comments than actually doing anything physical. :-]

        Liked by 1 person

        • H.R. says:

          Yeah, I had to hire the neighbor’s kid to come over every now and then to push my stomach so I can breathe. I have a sign on the desk to remind me to start exercising tomorrow.
          😜

          I think you’re right to an extent, but it’s the smart phones wot dunnit, not the computers.

          Liked by 2 people

    • Rex says:

      This. /\
      Sorry I missed your comment before posting, blues.

      Liked by 1 person

  20. MisterPasta says:

    Maybe all those really smart economists graduated the same class as that new Democrat darling, Acompromised Occipital-Cortex.

    Liked by 11 people

    • Critical Mass says:

      The “like” is for “Acompromised Occipital-Cortex”. Very inventive and funny. How many nicknames has that silly girl generated? There should be a national competition for the most pejorative nickname for her.

      Mine is “Occasional-Courtesan”.

      Like

  21. For Eyes says:

    Pollster Rasmussen says black support of Trump is now 36%. Last year in the teens. The number of people on food stamps is shrinking. The Fake News can say what it wants but in the real world on Main St. this is what folks are seeing.

    The panic among Dems is as much to do with this as it is about the whole DOJ / FBI thing imploding, which after all only affects a relative handful, compared to the eroding support across the party.

    Liked by 7 people

    • Ditch Mitch says:

      4eyes, saw that but was not sure where to post. Since you did I will add a short comment.

      Big thing I see in the poll is how fast black support is increasing week to week. 29-31%, 31-33%, now 33-36%. Directly related to the economy.

      Liked by 9 people

      • For Eyes says:

        Yes. And also hispanics

        Liked by 3 people

        • Yes, the improvement in approval is pretty striking. Whether it will effect any elections depends upon where the changes are taking place.

          That said, these changes could have a big effect on 2020.

          ‘White’ voters are, basically, 50D/50R across the country. As you may have noticed there’s still a 10+ percent of ‘Republican’ voters who don’t support the President. That might improve, but even if it doesn’t well-placed Black and Hispanic voters could make 2020 a rout for VSGPDJT 2.0.

          Liked by 1 person

          • Ditch Mitch says:

            Typically less than 10% of blacks vote republican. With 30% approval I suspect much greater than 10% voting republican. Dims need at least 87% to win. And yes if we are talking congressional races the effect will vary by district, but it can only help the republican candidates.

            To your last point, are you implying every dim is against the president? I don’t think so, I think PDJT and his endorsed candidates will get more dim votes than they would like to admit.

            Liked by 5 people

            • First, let me say something about polls and polling.

              In general, I don’t trust polls unless I understand the ‘nuts and bolts’ of how they are done. 2016 showed that the polling techniques were critical in determining the accuracy of any poll. In the Real Clear Politics list of polls in 2016, there was only one poll that, in hindsight, actually predicted the outcome: LA Times/USC Tracking. They used a very different methodology from every other polling agency.

              If you don’t know the methodology, you don’t know what the poll means.

              In today’s propaganda environment, polls are used to manipulate public sentiment far more than they are used to describe it.

              Now onto politics.

              Everything depends upon how well Black approval ratings translate into Black Republican votes in 2020 which is, quite frankly, a long way off.

              Black approval ratings for President Trump may not have any effect on the midterms because Congressional elections are influenced more by local politics.

              This is true even when both parties are trying ‘nationalize’ every electoral contest.

              For example, what happened in the Ohio 12th Special Election? Did the GOP just drop the ball? Was Balderson just not as good a candidate as O’Connor? What kept the Republican voters in this largely ‘Red’ district from showing up to support Balderson?

              I know that seems like a tangent but my point is that there are a lot of variables that go into political success or failure but there is only one way to political victory: Votes.

              Like

    • piper567 says:

      For Eyes: rimshot.

      Like

  22. Rex says:

    Experts?
    Experts..?
    It is purty darn obvious we need some new experts..

    Liked by 1 person

  23. Peter Rabbit says:

    Rising poll numbers for POTUS in Black community and Hispanics is disaster time for Dems, who have no believable economic platform. POTUS is clearly a genius in economic matters, plus great instincts politically and foreign policy. Never thought this could be accomplished so fast. Wow!!

    Liked by 1 person

    • Ditch Mitch says:

      All while systematically taking down the deep state. Many are impatient at the take down of the deep state; however, with so many against PDJT from the beginning it it amazing that he is doing the take down at all.

      Liked by 1 person

  24. Suite. D says:

    Experts! We don’t need no stinkin’ Experts.

    Liked by 3 people

  25. Shiggz says:

    *Amazing how Obama did this! We thought he was just focused on golfing, tranny bathrooms, and dinner with beyonce. Apparently he was cooking up super secret economic miracle and didn’t tell anyone about it. In fact even today he is being coy aNJ out just what he did that caused it.

    *Actually Isn’t this unpatriotic of Obama to make all this economic progress happen starting the month he left office but then not tell the rest of us how he worked such a miracle?

    *Obama please explain your secret of this economic boom that real economists like Paul “alien invasion” Krugman might study your works for generations to come!

    *Obama did take credit for the economic stabalization that happens during his first year.

    *wow that obama stimulus really worked it was just 8 years delayed getting here.

    Liked by 3 people

  26. JasonD says:

    What a downer for Bill Maher. Wasn’t he advocating for a recession, or something? You just know that DEMONRATS are EVIL when they are praying for a recession so that poor people will remain poor.

    The RNC is just spoilt for choice in advertising material on the economy alone. Obama’s “Magic Wand”, Pelosi’s “Crumbs” and “Repeal the Tax Cuts”, but the kicker has to be Maher’s “Wishing upon a Recession”

    Liked by 3 people

  27. Peter Rabbit says:

    Let the Liberal bastards keep talking. Beautiful as they expose themselves. Clueless bastards.

    Liked by 1 person

    • JasonD says:

      They may be onto something with this censorship things /sarc. Now if only they were smart enough to figure out that it was themselves they need to censor? I know, I know, there’s an (oxy)moron hiding in that logic. And “splendiforously”, they are not smart enough to spot an oxymoron, let alone that they are the morons. More circular logic, how do I get out of this looooooop?!

      Liked by 1 person

  28. Steven says:

    Is anyone compiling a list of all of those so called “expert” economists who were shocked by the results of the Trumpism? We need to wipe out all of those Keynesians!

    Liked by 2 people

    • railer says:

      Please remember, Trump is spending at Obama’s Keynesian levels, and then some. I think he’s captive to things right now, and the Cromnibus model of fiscal policy that McConnell and Ryan and Boehner and Pelosi and Schumer have forced on him. Nonetheless, an honest assessment says that he’s signing budgets that are nothing but bloated insults to MAGA. Once these initial battles are won, the budget, deficit and national debt must be addressed, as Trump knows full well.

      Like

  29. boutis says:

    Last weekend was the sales tax-free pre-school start shopping weekend in Texas. I live in an area that is near (70 miles) from the border of Louisiana in a small city with more than average shopping opportunities for an area this size. Traffic was very heavy, most stores, strip malls were full, restuarants overrun, and most of us without school age kids decided for a stay at home weekend to avoid the mobs pretty quickly. People have money in their pocket, they were spending it on themselves or their children with the opportunity of tax free purchases for the fall and start of school needs, and then a meal or two with the local and chain resturants running specials for shoppers which were overrun promptly and kids of all ages were everywhere. I don’t remember when shopping was this heavy even for Christmas in the past several years. People do NOT shop like that unless they feel good about the economy and have at least some money to spend. This is THE Trump economy that has trickled down to even the smallest towns in Louisiana and east Texas. No one is listening to media economists.

    Liked by 3 people

  30. Pyrthroes says:

    Unalloyed good news, and “common sense” to boot. While Wall Street mandarins dine out on arbitrage, piling derivative Ossa upon Pelion to hedge-fund and House Croupier advantage, real-world nuts-and-bolts development opens not to Pied Piper “share-the-wealth” but to free-range chickens stuffing every pot.

    Absent controlled experiments, falsifiable hypotheses (we’re looking at you, Bernie), Economics is not a science but a classificatory discipline akin to botany. As yet, there is neither a colloquial nor a fancy Greco-Latin term for this… a doctoral thesis comparing churning entropy vs. spontaneously self-emergent (“bootstrap”) innovation would be apropos. But who in today’s ossified, porkrind PCBS academic context would have the guts to touch this with a pole?

    Over 21 months from Dec-2016, through 3-Qtr-18, we project Trump Prosperity’s compound annual growth will tick ~ 4.63% (!). Give Secretariat his head, and leave Statist feedbags to crony socialist China and Russia, the EU plus sadsack satrapies from Cuba and Venezuela to Zimbabwe.

    Liked by 1 person

  31. For Eyes says:

    WALMART 2Q ADJ. EPS $1.29, EST. $1.22
    WALMART-ONLY U.S. STORES 2Q COMPS EX-GAS +4.5%, EST. +2.2%
    WALMART U.S. COMP SALES EX-GAS BEAT EST.;BOOSTS YR ADJ EPS VIEW

    Like

  32. stop the coup says:

    SD nails it here. I was going to have to lay a person off, so I did exactly this on a unit we assemble in China. Moving the assembly to the US increases cost by .02% but that is more than made up my having to carry less inventory to compensate for the long transit time from China. This before even considering the intangible benefits to building in the US. So, not only did I not have to lay somebody off, I am able to hire an additional person. We are one of millions of small businesses, multiple it out and you have MAGAnomics!

    Liked by 2 people

    • G. Combs says:

      People esp ‘economists’ forget small business. There are a LOT of one to ten person shops out there finding they have to hire a person or two even if it is just casual labor for a day or two or a week.

      April 29, 2013 What America’s $2 Trillion Underground Economy Says About Jobs
      “…. most of these new participants in the underground economy are ordinary hard-working Americans who are increasingly taking jobs that pay “under the table” either because nothing else is available or they need a second source of income to make ends meet.

      America’s underground economy is nothing new, but since the Great Recession hit,[The Obummer years] experts estimate it has doubled in size, driven by unemployed or underemployed people desperate for income….”

      “Small firms accounted for 65 percent (or 9.8 million) of the 15 million net new jobs created between 1993 and 2009…. An estimated 552,600 new employer firms opened for business in 2009, and 660,900 firms closed….” http://web.sba.gov/faqs/faqIndexAll.cfm?areaid=24

      Small businesses losing out to red tape

      “….cities and states stifle new small businesses at every turn, burying them in mounds of paperwork; lengthy, expensive and arbitrary permitting processes; pointless educational requirements for occupations; or even just outright bans. Today, the Institute for Justice released a series of studies documenting government-imposed barriers to entrepreneurship in eight cities. In every city studied, overwhelming regulations destroyed or crippled would-be businesses at a time when they are most needed.

      Time and again, these reports document how local bureaucrats believe they should dictate every aspect of a person’s small business. They want to choose who can go into which business, where, what the business should look like, and what signs will be put in the windows. And if that means that businesses fail, or never open, or can operate only illegally, or waste all their money trying to get permits so they have nothing left for actual operations, that’s just too bad. This attitude would be bad enough in prosperous times, but in a period of financial strain and high unemployment, it’s almost suicidally foolish….. “

      April 13, 2017 Red Tape Burdens on Small Businesses
      “It’s well-known the regulatory burden falls disproportionately on small business. American Action Forum (AAF) research has discovered they are shedding jobs and wages are falling because of the Affordable Care Act. In addition, as regulation increases, the number of small business establishments decreases, while the largest businesses grow more numerous. Based on AAF’s latest research, the paperwork and compliance burdens alone total more than 3.3 billion hours and $64.6 billion. Given that compliance affects small businesses more acutely, each new hour of paperwork means less productivity, fewer profits, and diminished competitiveness, relative to larger competitors….”

      Now if we can get the states, towns and cities to give small businesses relief from idiotic regulations some of those underground businesses can come back into the regular economy.

      Liked by 1 person

  33. Pipefitter1289 says:

    I “ducked” (used duck duck go!) to find out what the red x means by the twitter handles. It’s for conservatives to show either they’ve been shadow banned or that they just want to stand against the practice. The search also led to an article where libs are mad about the growing economy and especially the retail sector. They are trying to boycott all big stores and any unnecessary purchases until after the election. They’ll be like someone trying to get out of a store when they unlock the doors for the Christmas Black Friday sales! Our purchases will more than cancel out their non-purchases!

    Like

    • AlinWonderland says:

      “Mad about the growing economy” ??? Who ARE these people? They should move to London. Or China.

      Liked by 1 person

    • G. Combs says:

      “…an article where libs are mad about the growing economy and especially the retail sector. …”

      YES, The Leftists are TRULY MAD as in really really CRAZY!

      I am glad that President Trump is forcing the Leftist to reveal just how insane they and their ‘policies’ are.

      Like

  34. LBB says:

    From Reuters

    “The number of Americans filing for unemployment benefits fell for a second straight week last week, suggesting no impact yet on the labor market from ongoing trade tensions between the United States and its trading partners.” and other good stuff.

    https://www.msn.com/en-us/money/markets/us-jobless-claims-fall-for-second-straight-week/ar-BBM0nJY?li=BBnbfcN

    Like

  35. dufrst says:

    WalMart kills earnings! This tends to confirm how strong economy is and retail sales

    Like

  36. RobR says:

    Attention all car – be on the lookout for dire warnings of “Runaway Inflation”!

    Like

  37. kenji says:

    DOW is UP +400 points on the GREAT NEWS of an emboldened consumer (and Trump’s successful stare-down with China).

    Meanwhile … the MSM is CONSPIRED against MY President today … as if they don’t conspire to ALL take dictation of the DNC talking points every day of the week. I am all in favor of a FREE and INDEPENDENT Press. Sadly, that went away lonnnnnnnnggggg ago.

    Like

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