07/27/18

GDP Growth 4.1% – do not overreact

GDP, Big Red Car? Huh?

Big Red Car here on a lovely, warm Texas summer day – sun shining and headed to 101F. Ahhh, summer!

Something else which is hot is the economy. It is hot as evidenced by today’s GDP number which shows growth in excess of 4%. This is Q3 2018 (April, May, June 2018). US starts its fiscal year in October, but you knew that, right?

Couple this with low unemployment, high job growth, the beginning of real wage growth, increased capital spending, and some progress on the issue of trade and it is easy to see why the President was in the Rose Garden taking a victory lap.

When pressed to explain why growth has begun to accelerate, President Trump and his economic advisers pointed to reductions in regulations, the tax cuts, and the beginning of work on trade. They had a few other things, but those are the big ones.

The most important thing is that the White House is trying to create a fertile environment for growth. That is more important than many of the elements.

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05/12/16

Recovery? Won’t Get Fooled Again

Recovery. Talking recovery today.

Big Red Car here. I’m vexed. People think that the economy is doing fine or, worse, that it is headed in the right direction. It is not.

Let me tell you why. First, say: STRUCTURAL CHANGES to the ugly face of employment.

There are four things we need to look at: total unemployment, unemployment for 25-54 year olds, the Labor Force Participation Rate for the same 25-54 year olds, and Employment-to-Population ratio for the same 25-54 year olds.

So, the hypothesis of this post is this — while America has been engaged in the weakest recession recovery dynamic in the history of the United States, the job market and the structure of our employment force has changed STRUCTURALLY.

A historic example of something like this was the wholesale introduction of women into the work force in the early 1980s. It changed things. Forever.

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08/26/15

Let’s Cut the Crap — the Economy Sucks

Big Red Car here. Going to be a great day in the ATX, as usual. How many days until Longhorn football?

You do the math, dear reader. The Horns play Notre Dame in South Bend (Touchdown Jesus, y’all!) on 5 September. The game is on NBC and starts at 6:30 EST.

So, the economy? What is going on with the economy?

The economy is not good, y’all, but you wouldn’t know that if you listened to the folks in the White House who are spiking the ball and touting their success in growing the economy.

Let’s cut the crap about the economy and get into some facts. Continue reading

02/9/15

Raising Taxes, A Presidential Thing

Big Red Car here in the ATX which is enjoying some convertible weather. I am headed out to the Hill Country this afternoon and why not?

Folks up north, please don’t hate me — the azaleas will be blooming in about five weeks here in Texas. Always coincides with Spring Break.

So The Boss has been digging into the issue of taxes. Taxes are an important consideration for those in the startup business as they hope to ultimately monetize their work and investment. In the course of doing this they will likely be subject to capital gains. Not a bad thing. Continue reading

02/10/14

The Reality of Our Terrible Economy

Big Red Car here.  Hey it was 72F yesterday.  The Boss took a long, long walk in shorts and a tee shirt around Town Lake (the damn Lab tripped him and he went down hard but executed a paratrooper three point landing, so nothing broken — that Lab is in big trouble).  That Lab is dumber than dirt.  Sorry, Bella. Continue reading

10/25/13

What Food Stamps Tell Us About the Economy

Big Red Car here.  Ya’ll know what’s cooking in the ATX, right?  I’m not going to tease you.  It’s fabulous.

So The Boss is talking to one of his professorial buddies and they’re talking about the economy.  Ooooh, the economy is not doing very well, Grasshopper.  You knew that right?

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12/18/12

A Gig, a Product, a Job, a Career, a Profession (The Leadership Series)

Big Red Car here.

The Boss is still up skiing in Steamboat.  Snow is still pouring down and I am starting to feel just a bit sorry for myself.  I have been cooped up all week since Sunday and am getting a bit anxious.

I want to get out and run.  My job, my work, is to lower the top and run like Hell.  Through the neighborhood — never, ever violating the speed limit mind you — and when The Boss is feeling a bit wild through the Hill Country and out to the lake and back again.  I have a great job.  I am in the pleasure business.  Come ride with me.

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