There is only one thing that will fix things in this country: Growth
Growth pays down the deficit.
Growth eliminates tradeoffs.
Growth reduces dependency on the social safety net.
While the quants are running through the numbers, somehow including all the factors that net into “will or won’t the tax plan work,” there is one key variable that fixes all their models: annual GDP growth going from 2.8% to 4%.
The market already figured this out and made its calculation on election day. Major economists and the DC quants said the market would go down if Clinton lost.
The market surged.
It surged because the election signaled anticipation of a tax plan. You can debate all day long what the 19,000 publicly traded companies and 6 million private companies in the U.S. will do with the extra cash: pay themselves, pay a dividend, buy back stock, whatever.
But the math says this tax cut will increase free cash flow, increasing valuations.
If you are calculating the impact of the tax bill on your household budget, don’t forget to include the change in your stock portfolio. If you don’t have a stock portfolio look up the term “Wealth Effect” and determine if you benefit from it. If the new tax bill harms you, think about how the old tax bill harmed others. In a country of 323 million, the singular acts of a few in DC always includes collateral damage.
Stop complaining. Do something.
Each increment of growth raises all boats. It increases tax revenues. It increases opportunities.
While only 536 people in DC can create laws, all 323 million people in the U.S. can create growth. It does not take many Steve Jobs to really change things.
So we have a choice. We can complain about politicians. We can describe our harm. We can tweet news that vents our frustration.
Or we can participate in growth.
We are not all Steve Jobs. We don’t need to be.
More than 50% of U.S. businesses are small businesses. You can invest in businesses. You can buy from businesses. You can promote good businesses. You can let a business know how to serve you better.
Or you can do it your way.
Just stop complaining. Any way you slice it, 323 million people out innovate the opinions of the 536.
The answer is growth.
PS: Don’t forget, when all else fails innovation is deflationary.