I have an alternative explanation for Walmart’s recent beneficence – a growing shortage of qualified employees.
In recent weeks, the U.S. has experienced two natural disasters – Hurricanes Harvey and Irma. Much real property was damaged or destroyed by these two hurricanes. There will be an increase in construction expenditures to repair and replace damaged/destroyed buildings and homes.
If America wants to restore manufacturing employment to its former glory, the federal government should form a search-and-destroy task force with the authority to enter manufacturing facilities in the U.S. to smash robots, computers and any other labor-saving equipment the deputized task force deems appropriate. Then there will be a tremendous increase in demand for U.S. manufacturing employees.
It is this conventional-wisdom notion that tax-rate cuts and/or increased federal government spending stimulate domestic spending on goods and services that I want to discuss in this commentary.