Free Markets, Free People
The following US economic statistics were announced today:
In weekly retail sales, Redbook reports a below-plan 2.9% increase from the previous year. ICSC-Goldman reports a relatively strong weekly sales increase of 0.6%, and a 2.7% increase on a year-over-year basis.
Construction spending in November fell -0.3%, though it was still 7.7% higher on a year-over-year basis.
The Markit Economics’ final December PMI Manufacturing Index is 54.0, up 1.2 points from November’s 52.8.
The ISM Manufacturing Index is a relatively weak 50.7 for December, but is still up more than a point from November’s 49.5.
In case you’re looking for an “fiscal cliff” bottom line, here it is in one sentence.
According to the Congressional Budget Office, the last-minute fiscal cliff deal reached by congressional leaders and President Barack Obama cuts only $15 billion in spending while increasing tax revenues by $620 billion—a 41:1 ratio of tax increases to spending cuts.
If there’s any good news in this “compromise” bill, it is that the Democrats will get their tax on the rich, and it will make absolutely no difference in the debt.
As we’ve been saying for years, it’s not a revenue problem, it is a spending problem.
In fact going over the fiscal cliff is not been avoided, the chasm has just been deepened. Or said another way, the can has been firmly kicked down the road.
The word of the day?
UPDATE: In case you were wondering what this means in nice round numbers in terms of debt:
The fiscal cliff deal approved by Congress will increase deficits over the next decade by close to $4 trillion, according to the Congressional Budget Office.
Like I said, in full sarcasm mode, “great job!”