Wall Street Journal (April 3)
“The tariffs Trump announced would lift the average duty above the previous peak of 1930. It is by far the most disruptive component of an agenda that may be one of the most disruptive of any new president since the 1930s, one that includes slashing immigration, government spending, taxes and regulations.” The timing for all this is striking. “The economy he inherited was the envy of the world with growth of 2.8% last year, faster than almost every other major developed economy, an unemployment rate of just 4.1% and inflation of 2.8%. Stocks were at record highs.”
Tags: 1930, Disruptive, Duty, Economy, Government spending, Growth, Immigration, Inflation, Regulations, Stocks, Tariffs, Taxes, Timing, Trump, Unemployment
Financial Times (March 20)
Though Accenture “did not cut its full-year earnings guidance, as some analysts had expected,” the consulting group “has warned that Elon Musk’s efforts to slash US government spending have started to affect its revenues.” It also highlighted “threats from global economic uncertainty.” Government contracts account for approximately 8% of Accenture’s revenue, and the firm’s shares “are now down 15 per cent since Trump’s inauguration in January.”
Tags: Accenture, Analysts, Consulting, Earnings guidance, Economic uncertainty, Expected, Government spending, Musk, Revenues, Shares, Slash, Threats, Trump, U.S.
Barron’s (December 23)
Brazil ends 2024 in a paradox. The economy is strong with GDP expected to “reach 3% for the third year running. Unemployment is at a record low and the trade surplus at an all-time high.” Nevertheless, “markets are awful.” Investors appear to be “looking past the healthy present to a recurrence of Brazil’s chronic economic disease: excessive government spending that spurs runaway inflation and crowds out growth with debt payments.”
Tags: 2024, Brazil, Chronic, Debt payments, Economy, GDP, Government spending, Growth, Investors, Markets, Paradox, Recurrence, Runaway inflation, Trade surplus, Unemployment
New York Times (June 29)
The world is “now conducting a dangerous experiment.” An article by David Leonhardt compares current moves to cut government spending and raise taxes with what happened during the Great Depression, when the fragile recovery was upset. Though there are striking similarities, there is room to hope that “today’s situation is different enough to assure a different outcome.”
Tags: Government spending, Great Depression, Recovery, Tax
