Trump’s plans for making tip income tax advantaged, just like his plan for substituting tariffs for personal income tax, is NOT an economic plan. It is a “VOTE GETTING” plan aimed at uneducated voters (which are in the majority). After he is elected and the “plans” are shot down for good, sound economic and policy reasons, he will blame the “Deep State” for them not coming to fruition.
Allison Schrager is spot on about "no free lunch lasting forever." The wealth bubble we have witnessed since about 1990 has stretched beyond the stock market to almost almost every other market. That is, unlike the post-World War II period when there was a negative correlation relative to GDP of markets like stocks and real estate, they have both grown together in value quite significantly. Roughly speaking, every $100,000 of wealth today would be worth about $60,000 in pre-1990 prices. Some of this bubble has also stretched world-wide, portended perhaps by such events as the rise and more recent crash in Chinese real estate. The open question is whether the decline in nominal and real interest rates, which lasted several decades and also couldn't last forever, was a major cause. Regardless, we are in a different world today, and I don't think we have thought through the consequences.
Trump’s plans for making tip income tax advantaged, just like his plan for substituting tariffs for personal income tax, is NOT an economic plan. It is a “VOTE GETTING” plan aimed at uneducated voters (which are in the majority). After he is elected and the “plans” are shot down for good, sound economic and policy reasons, he will blame the “Deep State” for them not coming to fruition.
I think Nvidia is the Levi's to AI.
Always right on Allison !
Allison Schrager is spot on about "no free lunch lasting forever." The wealth bubble we have witnessed since about 1990 has stretched beyond the stock market to almost almost every other market. That is, unlike the post-World War II period when there was a negative correlation relative to GDP of markets like stocks and real estate, they have both grown together in value quite significantly. Roughly speaking, every $100,000 of wealth today would be worth about $60,000 in pre-1990 prices. Some of this bubble has also stretched world-wide, portended perhaps by such events as the rise and more recent crash in Chinese real estate. The open question is whether the decline in nominal and real interest rates, which lasted several decades and also couldn't last forever, was a major cause. Regardless, we are in a different world today, and I don't think we have thought through the consequences.