I am not an expert on anything, nor am I locked into any single-minded philosophies which disregards twenty-first century economics and common sense. Most of those ideas came from the mid-twentieth century when technology was different. Many people believe those old philosophies are not longer valid. The recent corporate tax cut is the product of one of those beliefs.

The tax cut is supposed to create jobs, decrease imports, increase exports, and increase tax revenue to reduce the additional deficits and debt. In the short term, some jobs may be added over the 190,000 per month we have averaged for the last several years. Short term, because the new tax laws make replacing humans with robots more economical. Many other factors will determine what import and export changes occur. The deficit increase may be over two trillion with a good economy and stable interest rate. Neither will continue very long.

Interest rates will continue to rise as the Fed moves to normalize their rates and finances so they have ammunition for the next recession. Raising interest means more bonds need to be sold to pay for additional debt payments. Having to sell more bonds means higher rates will be required. Currently China buys a large part of these bonds. If they stopped or dumped their $2 – 3 Trillion reserves, we couldn’t sell new ones to pay for government operations. Interest rates would skyrocket. A greater national debt is a greater national security danger. .

Another concern is the money corporations are supposed to bring back with the cheaper tax rate. It’s mostly in U.S. Bonds so when they sell them off to do something here, bond prices may drop.

These are a few of the downside complications to giving money to corporations that are already awash with money.

For the past few decades, the Republicans have spoke out of both sides of their mouths. Cutting taxes during Republican controlled years and complaining about deficits during Democratic years. Assuming the next President is fiscally responsible, the new President must raise revenue to pay down our massive debt. Raising taxes to save our country is a hard campaign promise to run on when so many idiots vote!

I am not a fan of Wal-Mart because they force their suppliers to export jobs to produce cheaper items for sale in their stores. I once heard an expert on retail say Wal-Mart will switch suppliers if they can get an item for a penny cheaper. That has created an atmosphere of boosting China’s economy at a cost of American jobs. Seems like I was told they used to have a Made-in-America area but it got smaller and smaller until it disappeared. I say I was told because the only reason I go into the Morris store is to visit my optometrist.

With that stated, I want readers to understand the latest news from Bentonville, Arkansas. Supposedly, raising starting pay to $11.00 is because of the tax cut — it isn’t! This was planned in 2014 when they raised it to $9.00, then to $10.00, and now to $11.00. They had already planned to spend that $400 million with the 2014 planning session. Those much touted bonuses will be a one-time event costing them $300 million.

At the same time they are firing 3,400 managers so they can be replaced by cheaper people. They are also closing sixty-three Sam’s Clubs putting over 9,000 people out of work. The financial expert didn’t know how much the manager firings would save but the Sam’s Club’s closing could save over $300 million in savings. Coincidence? I doubt it.

Wal-Mart’s tax savings are expected to be over $2.2 billion each year. Where will the difference ($1.8 billion) go? It will go to the stockholders which the Walton Family is the biggest share holder block. How much of it will go to Trump’s re-election campaign and into those Koch organizations? We may never know?

What will the Republican tax cut bill do for most of us — very little! Companies that were already awash with money are supposed to reinvest in their business. The Republicans said those companies would raise wages with their huge tax cuts but there is no reason to believe they will do so. Two reasons for why the expected results won’t happen.

First is immediate expensing of equipment purchased. Hiring more employees or paying existing ones more is the political goal. But labor is almost a point below the 5% considered to be full employment. If productivity (more production with less labor) is to increase with a labor shortage, the companies will have to increase automation. Increasing automation may have an unexpected result — firing existing employees! Making new cars is a great example of robotics replacing people. The result will be decreasing employment. In China cars are built with a smaller percentage of people than the plants here and the same with Chinese distribution facilities. It’s already being planned for those facilities in the Joliet area. This will just speed it up!

Second is the expectation that the CEOs will not spend the increased tax savings by increasing their income, buying back shares to increase share price and thus the CEOs income, or buy other companies. This is idealistic. The last means cutting employment in one or both companies.

These are just two of the (unanticipated?) consequences of giving cash-rich companies even more unneeded money, deductions, and loopholes. After reading the bill’s fine print the National Debt will rise 1.5 to 2 trillion dollars each good economic year and even more during bad years. So much for the Republican keystone philosophy of debt reduction!