Economic Trumpedo

We're doing well.

That's what you say. Obviously, you haven't been in a grocery store recently.

   The American economy continued a recovery of sorts in the third quarter, as output grew by 2 percent, according to the third estimate by the Commerce Department. Separately, an independent analysis of GOP candidate Donald Trump's tax plan would give the biggest benefits to the wealthiest Americans as it cut federal revenues by $9.5 trillion, offsetting perhaps all of the tax cut incentives and increasing the national debt by nearly 80 percent to as much as triple its ratio of debt to GDP.
   Result: A likely crashing return to hard times.
   Meanwhile, the economy seems healthy, if not robust. The third quarter growth rate was roughly the same as the second estimate of 2.1 percent. It was down, however, from the 3.9 percent growth rate in the second quarter. The increase largely reflected increased confidence throughout the country, as consumer spending, investment, and state and local spending rose. 
   Realistically, economic growth was about half the rate it was earlier in the year, but the growth seemed to support last week's attempt by the Federal Reserve Board to tap the brakes slightly by raising interest rates as a way to prevent overheating of the economy.
   Whether the economy will withstand the Fed's brake-tapping, or will slip-side into a trench because of it remains an open question. Even the Fed itself put cautionary warnings into its announcement, noting that it would monitor domestic and especially international developments closely, and might even revert to its near-zero rates. However, lenders have already kicked up their charges, and whether they retract their hikes is also an open question.
   Meanwhile, other government data point to stagnant wages, and grocery shoppers are already complaining about steadily rising prices. Add to that the trillions of dollars in new debt the government would incur from the tax code revisions proposed by Trump, and the nation faces a huge economic torpedo.