The New Wealth Distribution-To Our Middle and Lower Income Levels

What Bonuses and Wage Increases Signal

Nay-Sayers on the Right and Left scoffed at Candidate and President Trump’s insistence and constant promoting of massive tax cuts to individuals and businesses.  Once the tax cuts were ushered through Congress by President Trump, the new mantra was that the tax cuts were for the rich and big business!

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All of these “Henny Penny”, “the sky is falling” idiotic pundits were WRONG, AGAIN ABOUT TRUMP AND HIS POLICIES!

Bonuses VS Wage Increases: (125 companies, 2.3M Employees Impacted Positively)

You may have wondered why many of the early companies who have announced bonuses or wage increases have started with bonuses rather than wage increases.  Simply, bonuses are a one time event where wages carry forward and permanently increase a business ongoing labor expense. 

But, now, with Walmart announcing bonuses and wage increases, companies have finalized their analysis and are seeing short and long-term benefits to their operations.  Their analysis is showing that they will gain not only additional cash flow as a result of lower taxes and regulations but long-term sales and revenue benefits from the economic growth in lower and middle-income wage sectors.  Further, more people will leave government subsistence and join the ranks of the employed where they will have more disposable income.  

The transition from giving one time bonuses to raising wages of entry-level and upper income wage earners is a long-term signal that the Trump tax cuts will have a dramatic and lasting impact on the US economy! Not only are companies “feeling the love” for the tax cuts, voters are feeling that same “love”:

The Hill reported today that:  “Two-thirds of voters polled, 66 percent, said in a Quinnipiac University poll released Wednesday they would characterize the economy as “excellent” or “good.” Quinnipiac noted that figure is the highest rating since it began asking the question in 2001.”

While President Trump’s personal approval numbers remain below 50%, numbers like these point out that people like the Trump economy.  With the mainstream media is skewing its coverage of President Trump with 95% negative coverage versus 5% positive coverage, they are not impacting the perception of voters on the Trump agenda.  

The best part of the Trump Tax Cuts is that the President just reversed the Obama socialist “redistribution of wealth core” by allowing taxpayers, individual and business, to keep their own money and allow the economy to lift up all income groups.  (those in California and New York need to talk to their own governors!)   The reliance on government handouts has already started to recede and will soon be at historic lows.

  The taller Trump becomes, the more diminished Obama becomes!

RD Pierini




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