Wholesale Inventories rose by 0.8% in September, not really news as it was back in September. What it does signify consists of the fact that Retailers downshifted their Purchase policy way back then. Overall Wholesale sales declined by 1.2% in September. This is a low-Risk policy on Retailers’ part, but based upon ongoing Retail sales patterns. It bodes ill for the upcoming Christmas Season.
David Altig gives a good Conservative reaction to potential Democratic initiatives after the victory in the Election. Dave is quite right in his estimate that the main focus should be on addressing the longterm fiscal imbalances. Greg Mankiw sees the Pharmaceuticals taking a hit from the Democratic control of Congress. He predicts lower Drug Costs to be better in the Short-run, but worse in health care in the long-run. I tend to disagree, cognizant of the over-drugging of Patients under the current system, and with realistic doubt that measurable gains can still be derived by fancier designs of Drugs. How long can Health Care Providers continue to saturate Patients with Drugs to their betterment? Maybe We should just quit eating in favor of stimulants and depressants.
Dean Baker must also be included, at least his disgust at the thought that Income taxes could increase to 180% of current rates (he has a slight difficulty in explaining this fact). I would be equally disgusted if I considered it true, but doubt such tax rates could be imposed; especially not during the tenure of the new Congress. Health Care liabilities will have to be settled by revamping the health care system, not by paying the Charges dictated by an unregulated industry.
All the problems the Democrats will face call for systemic change, something they will not accomplish without Republican assistance. The acrimony prevalent in the Beltway atmosphere cannot achieve the necessary unity required. Democrats would well be advised to drop the Adversarial roles of late Years, and concentrate on common cause. lgl
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