Here Are 14 Charts FedEx CEO Fred Smith Watches When He Thinks About The US Economy
US GDP has been going down on average for a long period of time.
No investment, no job creation.
Perhaps we over invested in the early '90s in businesses for which there was no market.
Less investment today, less growth in the future.
This is an exclamation mark on the fact that there is a lack of public construction.
We are living off of the seed corn of what our parents and grandparents put into the ground.
The central part of an industrial society is energy. The recent surge in prices is due to demand in the emerging world.
The increase in energy prices is the same as taxing the American people.
The good news is the U.S. is producing a lot more fuel thanks to the shale fracking boom.
Thanks to domestic supply, we're importing far less oil.
A huge part of our trade deficit is due to oil imports.
But the oil trade deficit is shrinking.
China is growing, but we continue to import far more than we export.
We also import far more from Japan than we export.
Here Are 14 Charts FedEx CEO Fred Smith Watches When He Thinks About The US Economy
"If there were one thing that could be done that would change the circumstance more than anything else, it could be done with a stroke of a pen. It would be to change to corporate tax code. Because at the end of the day, capital investment in equipment and software — there's an almost 100% relationship between capital expenditures and job creation. It is punitive, it punishes equity investment, it punishes capital investment. It encourages leverage and speculation, private equity, and the maintenance of trillion of dollars overseas."
Smith believes 25% would be a more appropriate corporate tax rate.
Here Are 14 Charts FedEx CEO Fred Smith Watches When He Thinks About The US Economy
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