Broke Americans are apparently feeling pretty goddamn good about President David Dennison and his policies, which are definitely aimed primarily at helping Joe Jack-Off escape from globalization-related impoverishment. “Believe me.”
The headline print on the preliminary University of Michigan Consumer Sentiment index for March was 102, well ahead of estimates and a 14-year high. The current conditions index rose to 122.8, which is a record.
The survey notes that “consumers continued to adjust their expectations in reaction to new economic policies,” including “favorable mentions of the tax reform legislation.”
Here’s the punchline from the report:
All of the gain in the Sentiment Index by March 15th was among households with incomes in the bottom third (+15.7), while the economic assessments of those with incomes in the top third posted a significant monthly decline (-7.3).
Why is that funny? Well, because think about it for a minute. You’ve got “favorable mentions of the tax reform legislation” and surging optimism “among households with incomes in the bottom third.”
In 2018 (click to enlarge):
It certainly appears as though Donald Trump has indeed succeeded in duping low income Americans by engineering short-term euphoria via one-off bonuses for America’s working class and by trotting out his sycophants to shout about wage growth on national television.
Never mind the fact that when it comes to how corporations plan to use their tax windfall, the y/y increase in buybacks (23%) dwarfs the projected growth in other uses of corporate cash (click to enlarge):
Now have a look at this (click to enlarge):
That’s from the same University of Michigan survey and it refers to this question: “How is your current financial situation compared with a year ago?”
Again, folks are apparently feeling pretty good about ol’ Dennison’s policies.
There are a bunch of caveats in the report (including an important note about an uptick in inflation expectations) which you can go and read for yourself, but the bottom line here would appear to be that you can indeed fool low income Americans by giving them free Ho Hos and Ding Dongs.
To all of those people who are feeling better about their financial situation as a result of the GOP tax plan, allow me to remind you how this invariably turns out over time:
The ultimate irony here is that inequality is one of the main factors that allowed Trump to sweep into office in the first place.
What could go wrong?…