Post 363: Growing Government Jobs Restrict Growth as Tariffs Begin to Bite

• Lululemon has not grown comparable store sales in the US for almost two years. 
  • And we review a scathing attack from the company's founder.
• US home prices vs. income have increased over the last twenty-five years. 
  • This, despite much lower mortgage rates. 
    • Correction, because of much lower mortgage rates.
• Ski-Doo and Sea-Doo maker BRP has experienced strong sales growth of late. 
  • But new tariffs whacked the company’s share price.
• Church & Dwight is a well-run consumer products company. 
  • But even their sales have slowed to a crawl.
• In Financial Ructions: 
  • A look at average US productivity growth through the decades.
  • A look at the jobs situation in Canada. 
    • And comparing government vs. private worker job growth. 
      • It’s bad news.
  • An article in the Financial Times again attempts to blame the high inflation of 2022 on Russia/Ukraine war. 
    • No, it was policy-driven.
• Book Review 
  • Although base money soared in the 1930s due to gold flooding into the U.S. 
    • The Administration, through the Fed, did its best to limit its impact on the money supply.
  • What recovery there was up to 1937 was a result of consumer spending. 
    • But it was not accompanied by investment and there was no increase in the capital stock.
    • PM: In other words, you can’t consume your way to prosperity.