Two Bad Indicators: GDP & Unemployment

[JohnyMac]

The 2013 GDP was just released and it came in -32% to 2012 (1.9% Vs. 2.8%).

And then the first time unemployment rate is starting to go up again. As a matter of fact we are back to levels seen 6 months ago. I think I posted something about this here.

Zero Hedge wrote:

The trend that was so many momentum-chasing bulls friend for so long has ended. The steady downward drift in jobless claims - all noise, debt-ceiling, winter storm, and software glitches aside - has ended. Initial claims rose 19k this week, missed expectations by the most in 6 weeks, and jumped to the same levels seen 6 months ago. The Labor Department says "nothing unusual" about this week's data but noted one state 'estimated' claims last week. Total benefit rolls dropped by 16k this week (back under 3 million) as emergency claimants remains "0".

So now, I wonder how things are going to pan out financially in 2014 - Thoughts?

[crudos]

So now, I wonder how things are going to pan out financially in 2014 - Thoughts?

Depends if Congress can get past ultra-partisanship and actually pass helpful legislation that can stabilize and grow the economy.
 

[JohnyMac]

I hear and agree with you Crudos. Just keep in mind that in reality the US Congress nor the President can do anything to affect private industry, good or bad with the exception of reducing or increasing taxes and/or reducing or increasing regulation.

You know how I feel: Reduce corporate tax to somewhere between 15-20% (Canada is at 15%, Russia is at 20%, UK is at 23% and Reagan & Congress reduced corporate tax to 25%).

Wisconsin's state corp tax rate is 7.9%. If you add the current Federal tax rate of 35% plus the state tax rate of Wisconsin, a business in your state pays out a whoppen 42.9%! Can you imagine what would happen if businesses in Wisconsin only paid out 27.9% in state and Federal taxes (7.9% + 20%=29.9%)? Now add that formula to 49 other states. 

The Federal government just doesn't have the legal right to do much more than that.

Just some food for thought.