Wednesday, March 21, 2018

Less Steak, More Spam

Whether he planned it or not, recent economic developments have helped Donald Trump in his battle with coastal elites.
  • One source of wealth, high-end real estate, will stop increasing and may even fall. The Tax Cut and Jobs Act reduces the deductions for state and local taxes and for mortgage interest. The elimination of these tax subsidies may well cool off the overheated real estate market in New York and California.
  • The drop in the stock market, whether due to the threat of a trade war, Facebook's woes, higher interest rates, political uncertainty, or all of the above, hammers the other major source of wealth for the coastal elites.
  • It's ironic that these developments will reduce the stark economic wealth inequality of the coasts versus middle America much more than occurred under President Obama, yet Donald Trump will never get a smidgeon of credit from progressives.

    Related: it's time for Costco's semi-annual sale on Spam, so I picked up a package. Less steak, more spam--time to watch my pennies.
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