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Monday, January 09, 2017

President Trump turns tweets into factory jobs.

Tweet, tweet. (Tweet, tweet.)
Tweet, tweet. (Tweet, tweet.)
His horn went tweet, tweet, tweet. (Tweet, tweet.)
President Trump has more critics than Florida has fire ants. They include all the experts who went oh-for-2015, then oh-for-2016, and are oh-for-2017 so far.

They say his tweeting ain't presidential.

No, but his tweeting is effective.

From CNBC:
FCA, the U.S. arm of automaker Fiat-Chrysler, announced on Sunday that it would invest a total $1 billion in plants in Michigan and Ohio, which will add 2000 new jobs in the United States.
The announcement, in what the company said was the second phase of a plan it first made public a year ago, came days after Ford Motor Company decided to scrap a plan to build a facility in Mexico, instead opting to invest in a plant in Michigan.
Ford's CEO cited demand, rather than the policies of President-elect Donald Trump, who has vowed to impose a "border tax" on companies that send jobs abroad.
"Consistent and combined with previously announced investments, FCA US is further demonstrating its commitment to strengthening its U.S. manufacturing base, and aligning U.S. capacity to extend the Jeep product lineup," FCA said.
Eight years ago, Barack Obama was scrambling to bail out carmakers who failed to see the recession coming.

This cost shareholders and bondholders of Chrysler and GM plenty. Pensioners too.

President Trump is not bailing anyone out.

He is promising to slap tariffs on them if they try to build cars in Mexico instead if the USA.

Look at the response.

Imagine what happens in eleven days when he is really president,


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  1. He's done more for the economy than Obungler has in the past 8 years and he isn't even president yet. He doesn't use a bully pulpit, he uses a bully tweet.

  2. "President Trump turns tweets into factory jobs."

    By threatening a trade war against his own country.

  3. "A rising tide lifts all boats." Every increase in each sector of the economy is added to the cumulative effects overall. Cars made in the U.S. may cost a bit more, but increasing the general level of employment also increases everyone's living standards. That is, if you are a participant. If you're just a deadbeat, tough. - Elric

    1. If a car costs 30,000 and it's made in the US where labor costs are 30, how much will it cost when made in Mexico where labor costs are 3?
      30,000 of course.
      So make it here, dammit.

  4. Replies
    1. If the recent election proves anything, it's that Big Tweet over-trump's Little Elvis.

  5. Hey Don - when is Trump going to tweet about Mylan Pharmaceuticals and get that company to move its hq back to the U.S.?

    1. When is Trump going to tweet about the inflated cost of pharmaceuticals?

    2. On the rag again dave?

    3. Wassa matter davey, aca doesnt provide u free tampons?

    4. It's very impressive, buddy, but spit it out. It ain't yours.

  6. Oh Don, sir, if you haven't done so, yet, go check out today's neverTrump drivel at the federalist telling Trump to stop using Twitter

    1. Thanks for pointing that out. What egregious BS that column was!

    2. Tweets ARE the new presidential short-takes to the nation. I guess The Federalist is now The FuddyDuddy.

    3. "today's neverTrump drivel at the federalist telling Trump to stop using Twitter"

      Kinda like the Wehrmacht telling America to stop using Patton.

  7. Sorry, don, I don't buy that Trump's tweets have a damn thing to do with manufacturers' decisions, or that threats of steep import tariffs do either.

    Steep import tariff's remove competitive pressure from domestic players. If the tariff on a car, for example, is 10%, the guy that can claim enough domestic content is going to automatically raise his price by 6% or 8%. Trump knows this, or should, and IMHO his Tweets are PR.

    Now, when a POTUS-elect signals that he will sign bills that lower corporate taxes and reduce bullshit regulations, CEO's and Boards of Directors sit up and start licking their chops.

    A company like Toyota doesn't make a billion dollar decision based on an effing Tweet and don't make the decision in a lousy month. However, they probably had the "American" plan waiting in the wings, and decided to pull the trigger after the election showed which way the political winds are blowing.

    1. To be sure, the regulation relief and halving the corporate tax play into it, but a 35% tariff gets attention STET. Ford gives him a heads up on canceling Mexico (which four months ago it said it would not stop) and he gives Chevy/GM a tweet up the tailpipe. Fiat C and the rest don't want a tweet when Chevy goes into reverse. Elections have consequences. Tweets too.

    2. Ford is still moving some of its small car production operations to Mexico, just to an existing Ford plant there and not building a new one.
      I still want to now how the folks in Buffalo are taking Trump's bullying tweet toward Toyota.

  8. Keynesian economic policy is enacted by increases in government spending, increases in money supply, public works projects, welfare spending, etc., and relies on a theoretical money multiplier to work its magic after the aforementioned outlays increase demand for goods and services. The money multiplier is based on the idea that when money is handed from one person to another the transaction increases the production of society by a certain amount and if the same amount of money changes hands several times, the effect is a multiple of that original increase. In the real world there probably is an actual relationship between the perceived money supply and the velocity of money exchanges in proportion to the numbers of transactions and the prices of them. There is a difference between being able to have a good approximation of describing a phenomenon and being able to take that abstraction and manipulate aspects of it with reliable and predictable results. Research has shown that actual measurements of multiplier effects are minimal to none, or even negative in the eyes of skeptical observers.
    One thing that struck me back in the days of the Bush tax cuts was that Keynesians never talked in terms of increased demand and economic expansion as a result of simply letting people keep more of their own earnings. To me this is a denial of their own cherished mechanism. Now we are seeing a new round of hypocrisy with Trump's talk of tariffs and keeping manufacturing in the USA. It occurred to me that if we can look at Obamacare as a tax on the relatively healthy as a way of providing health insurance to the poor or those at high risk (which I don't agree with, bear with me, I'm making an argument here), we can call any increase in local prices as a result of those tariffs as a tax that keeps more Americans in jobs and able to pay their bills without other forms of government assistance. The government collects money at the border and then again in withholding from paychecks that wouldn't be there otherwise, and we as a whole benefit from transactions taking place in the real, rather than the theoretical economy, where there is an actual money multiplier effect, rather than a paper one that doesn't exist at all.

  9. "President Trump has more critics than Florida has fire ants."

    Just as well he's packing a Flit-Gun called Twitter.

    Must be infuriating for the MSM. They spend all that time and money on newsprint and tv shows to stick it to the Trump man, and Mr and Mrs America get an immediate free response to it all on their Twitter feed.

    It's like Trump's playing with a marked deck, the MSM KNOW he's playing with a marked deck, but they can't do anything about it because it's the only game in town.

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