9 hours ago
This post was last modified 7 hours ago by IdeomotorPrisoner.
Calling out my own state here.
So here is the headline.
Bay Area Tech Saves California From Budget Crisis
So apparently the budget deficit went from ballooned to negligible in two quarters. And it was driven primarily by Silicon Valley stocks surging in this recent bull market.
It came in two distinct surges. One driven by positive numbers and Crypto in April-July and another possibly bigger one since people realized Trump was going to win in about late September.
https://www.nytimes.com/2024/11/22/busin...arket.html
That article sums it up. "Yay deregulation, cut tax rates! Yay profit. Boo Trump, feared deportation caused labor shortages and unfriendly tariffs! And Economists all say..." So many mixed feelings.
It seems investment is enthused right now about the prospect.
So where does that leave the Golden Irony State? The state that voted against the president whose election caused a stock rally that balanced out it's budget deficit?
All they can do is caution that Trumps policies may destroy it all.
But his election just likely fully erased the deficit. Especially with unreported recent gains. This recent surge completely changed the outlook, and if it continues with further deregulation and trickle down through the top taxed brackets it's good for state practices.
It's weird. Our quasi socialist way of doing things is funded by trickle down economics mostly stopping by the 87th percentile. The majority of wealthy liberals will take a stand against republican fiscal policy and then collectively bail out our budget. All the great revenue that balances shortfalls are the top stock and income earners, many in the bluest places in the state. It's counterintuitive.
The people that just saved our budget, and likely profiting mightily of the Trump boom, are the most concerned about his effect on their life.
It's great for them. Us "low income" pleabs are most likely fucked, but the more you make, the more Trump benefits you under current plans. The poor are most at risk of higher costs, the rich will be slightly inconvenienced. The high taxes they pay subsidize those making the least. Which they also like.
Theoretically, if they really cared about subsidizing the lower class through high state taxes and booming economy they'd vote for the Reaganomics that piggybacks Trump-o-nomics.
Big Tech has largely opposed Trump, and Trump-adjacent or speculative gains are sending them to profits that erased CA's budget deciticit.
Small deregulated federal government capitalism or promise thereof makes our large state government socialism possible and function without deficit. Surplus returning if 2025 is a good market year.
So thanks, Trump?
- California
So here is the headline.
Bay Area Tech Saves California From Budget Crisis
Quote:Big Tech’s stock prices boomed in 2024. Bay Area-headquartered Nvidia, Apple, Google and Meta were already humongous companies at the start of the year — as of Thursday, they’ve grown in value by 199%, 19%, 19% and 59%, respectively. Tesla, which has a Palo Alto engineering headquarters and large local workforce, is up 38% year to date. Even some smaller and less well-known Bay Area firms are seeing banner years: Broadcom is up 48%, and AppLovin is up a bewildering 693%.
So apparently the budget deficit went from ballooned to negligible in two quarters. And it was driven primarily by Silicon Valley stocks surging in this recent bull market.
It came in two distinct surges. One driven by positive numbers and Crypto in April-July and another possibly bigger one since people realized Trump was going to win in about late September.
https://www.nytimes.com/2024/11/22/busin...arket.html
That article sums it up. "Yay deregulation, cut tax rates! Yay profit. Boo Trump, feared deportation caused labor shortages and unfriendly tariffs! And Economists all say..." So many mixed feelings.
It seems investment is enthused right now about the prospect.
So where does that leave the Golden Irony State? The state that voted against the president whose election caused a stock rally that balanced out it's budget deficit?
All they can do is caution that Trumps policies may destroy it all.
But his election just likely fully erased the deficit. Especially with unreported recent gains. This recent surge completely changed the outlook, and if it continues with further deregulation and trickle down through the top taxed brackets it's good for state practices.
It's weird. Our quasi socialist way of doing things is funded by trickle down economics mostly stopping by the 87th percentile. The majority of wealthy liberals will take a stand against republican fiscal policy and then collectively bail out our budget. All the great revenue that balances shortfalls are the top stock and income earners, many in the bluest places in the state. It's counterintuitive.
The people that just saved our budget, and likely profiting mightily of the Trump boom, are the most concerned about his effect on their life.
It's great for them. Us "low income" pleabs are most likely fucked, but the more you make, the more Trump benefits you under current plans. The poor are most at risk of higher costs, the rich will be slightly inconvenienced. The high taxes they pay subsidize those making the least. Which they also like.
Theoretically, if they really cared about subsidizing the lower class through high state taxes and booming economy they'd vote for the Reaganomics that piggybacks Trump-o-nomics.
Big Tech has largely opposed Trump, and Trump-adjacent or speculative gains are sending them to profits that erased CA's budget deciticit.
Small deregulated federal government capitalism or promise thereof makes our large state government socialism possible and function without deficit. Surplus returning if 2025 is a good market year.
So thanks, Trump?
- California
![[Image: yk673b90cc.jpg]](https://files.abovetopsecret.com/files/img/yk673b90cc.jpg)
