Tag Archives: Texas Economy

An Economic Boom Trump Can Actually Take Credit For – Bomb Shelter Sales Exploding

Donald Trump has claimed credit for just about anything good that has happened with the economy over the last 9 months despite the lack of evidence that any of his policies have had any effect.  You might note that after years of denigrating the excellent unemployment numbers during Obama’s later years, Trump now claims them as his own.  Red believes that any administration gets too much credit or blame for the state of the economy and that the business cycle runs largely independent of executive policy (but not Federal Reserve action).  But there is one area of the Texas economy that Trump can take credit for – Bomb Shelter Sales are Booming (pun intended)! 

As reported by NY Mag, sales at Texas-based Rising S Bunkers are up 700% since Trump was elected. Rising S (which is short for Rising Son – or Jesus) was largely in the more mundane storm shelter business but has transitioned into up-scale bunkers for well-to-do survivalists because – you know –  Jesus likes him some wealthy paranoiacs.  RSB manufacturers its bunkers in the Dallas area, but sales are worldwide.  With the rising tension in N. Korea, Japan is a hot market right now.

Owner Clyde Scott makes his sales pitch which sounds very much like predicting an impending Trumpocalypse.

“We are the longest living government in the history of the world without a complete collapse, the United States. It’s our time.”

Rising S’s basic bunker costs $125,000 – a bit out of Red’s price range right now.  And Red isn’t going to buy just any bunker – he is going to insist on having Pepper Spray Portals and Custom Cabinets.   Until Red can afford that, he’ll just have to head to the hills and hope for the best.

 

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The Dentist Index Predicts Hard Times

Red’s Dentist, Root Canal Rodney, swears by his self-styled Dentist Index as a leading indicator of economic activity and job growth.   As RCR explained to Red the other day while inflicting pain, he is absolutely swamped right now and that means bad times are here to stay for a while.  This is because everyone that is getting laid off in the oil and gas industry is in a rush to get work done before their dental insurance benefits go away.  The second round will be when other businesses start to contract as a result of the O&G downturn.

Sales Tax Revenue Declines

For the first time in 5 years, Texas sales tax revenue has declined.  Texas Comptroller Glenn Hegar thinks that it is a mere dip and does not presage a continuing drop. Matthew Waller of the Corpus Christi Caller-Times has more.

Glenn Hegar announced he was distributing $610 million in monthly sales taxes, which year over year is a 1.2 percent increase.

However, Texas’ chief financial office said that state sales revenue in June was $2.2 billion, a 1.4 percent decrease compared to June of last year.

“This slight decline was expected due to the slowdown in the oil and gas mining sector, and is in line with the biennial revenue estimate presented in January,” Hegar said in a release. “Receipts from the construction, information, restaurant and services sectors continued to grow, however, which is a testament to Texas’ diverse and dynamic economy.”

Vance Ginn, an economist with the free-market Austin think tank called the Texas Public Policy Foundation, said this isn’t an indictment against the “Texas Model,” reasonable regulations, low taxes, low government spending, not conducive to frivolous lawsuits, and so on.

“Part of that (decline) is just going to be the natural slowdown,” Ginn said. “A lot of this was already forecast, budgeted in.”

The incident is “more of a short-term blip,” he said. “We definitely had slower job creation from the drop of the oil price.”