Sunday, October 1, 2017

Trump's Top Economic Adviser Thinks You Can Buy a New Car for $1,000

Gary Cohn, President Donald Trump’s chief economic adviser, said during a White House press conference that a “typical” family with two children making $100,000 a year. can expect a tax cut of $1,000, which would allow them to either renovate their kitchen or buy a new car.



Some problems:


According to the U.S. Census Bureau, the median household income was $59,039 in 2016.

According to Kelly Blue Book, the average new car cost nearly $35,000 as of January 2017.

And Market Watch reports:
As for a kitchen renovation, $1,000 might get you a fridge, but not much else. While a smaller remodel — which includes painting, refacing cabinets, upgrading the sink and adding a tile backsplash — can be done for about $10,000 to $15,000, according to HomeAdvisor.com, the average American kitchen remodel costs $21,800.
  -RW

4 comments:

  1. The thinking here isn't what $1,000 can buy but what $1,000 can borrow. How much can a person borrow on a $1,000 of annual payments or buy on credit with an extra $1,000 down?

    Of course what nobody is talking about is that for anyone not married with children this will likely be tax increase.

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  2. I've had to plunk down at least 3,000 greenbacks as downpayment for all new cars I've purchased in the last 9 years. I don't get where Cohn comes up with the $1,000 for a new car unless he's talking about buying a Yugo in 1989.

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    Replies
    1. You didn't look very hard. Most mfgs have been offering low or no interest or 0% down for years.

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  3. Cohn is probably convinced that there is deflation in the economy.

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