Friday, May 07, 2004

The confusions of Economics

Looks like the tax cuts are finally doing something...but they'd better do more quick, otherwise, we'll be in deep doo-doo.

And what about:

"The fundamental datum for most people is wages. That's how most people live. Wage growth has been lousy, profits are doing great. We expect that laggard job growth puts downward pressure on wages. If employers aren't chasing you, they have little incentive to offer higher pay."


I have to admit, I don't know that much about economics, but isn't profit growth supposed to translate into wage growth? Or is it showing up in the new job numbers?

But what about this from Bartlett:

"Corporate tax revenues are running 45 percent above last year owing to strong profit growth. Payroll taxes are also running above last year's level because of strong employment growth."

Well, the profit boost we saw and it seems that the incomes are down as well. Still though, I just have to wonder why incomes are down and payroll taxes are up. That still seems odd...

Here is the CBO monthly budget report

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