New Projections Of An Economic Slowdown For The U.S | Velshi & Ruhle | MSNBC
In this engaging episode of "Velshi & Ruhle," Ali Velshi and Stephanie Ruhle delve into the latest economic projections from the Congressional Budget Office (CBO), highlighting the looming slowdown in the U.S. economy. This discussion comes at a crucial time, as we reflect on the state of the economy under the current administration and its implications for American families.
The CBO has forecasted a slight economic expansion of 3.1% for the current year, which is a decrease from a previous estimate of 3.3%. This growth has been significantly influenced by recent tax cuts and increased corporate cash flows. However, as the hosts point out, this surge is not sustainable, and anticipated growth rates are expected to decline further in the coming years—projected at 2.4% in 2019 and tumbling to just 1.7% by 2020.
### Key Takeaways:
- Tax Cuts and Economic Impact: The hosts criticize how the tax cuts are disproportionately benefiting the wealthiest Americans, stating that families earning $25,000 or less are expected to save merely about $60 on their federal tax returns, while the top 1% might see savings of around $51,000.
- Wage Growth vs. Inflation: Despite the slight uptick in wage growth, which the CBO predicts will reach above 3%, current inflation is outpacing these gains, rendering the real income growth negative for many workers. Inflation currently sits at approximately 2.9%.
- Trade Wars and Growth: The ongoing trade conflicts, particularly those instigated during the current administration, are contributing to uncertainty, affecting both business investment and consumer confidence.
The conversation also touches on the implications of these economic conditions for American households, particularly how rising costs for necessities like housing are affecting budgets and spending capacity.
### Invite to Discussion
What are your thoughts on the current economic trajectory highlighted in the show? Do you think the tax cuts will ultimately benefit the middle class, or do you see them primarily aiding the wealthy? Join the conversation below and share your experiences or opinions based on the video and your own economic insights.
For anyone interested in expanding this discussion, feel free to check out related threads on economic policies or post your questions about how these projections could impact Windows users and the tech industry as a whole. Let’s discuss!