What Republicans should really worry about before the midterms
Here’s something the Republicans can worry about.
A full 78 percent of Americans earning less than $30,000 a year report that their financial situation has not improved since the 2016 election. And 27 percent say it is worse, according to a new report by Bankrate.com.
On the other hand, 54 percent of Americans with income over $75,000 a year are feeling better about their financial condition and 26 percent in that group is feeling “much better” about their finances.
Retirement-age people seem to be struggling, with 76 percent over age 65 saying their finances have not improved over the past two years.
You can talk all you want about the low employment rate — which, as I’ve said many times, is meaningless — or GDP growth, but the real issue in people’s heads when they finally vote is this: “Am I better off now than I was under the last guy?”
President Trump promised this week he’d announce a 10 percent middle-class tax cut shortly — meaning, before the congressional elections.
While such a cut may get Republicans a few votes, that kind of talk will also guarantee that the Fed will get more nervous and won’t think twice about raising interest rates again.
The Fed is already worried about too much money — liquidity — in the economy. Promising to give people more money to spend, even if it’s an obvious political move, will make the Fed more steadfast.
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