In the US, Trump wants to stimulate factory construction by allowing factories and equipment to be depreciated in a single year.

What does that mean?

It means you can immediately deduct the millions you invest in a new factory from your profit in a single year.

So, if you already have a successful business, thanks to this provision, which was included in Trump's Big Beautiful Bill, you can invest and, as long as you make a profit, recoup most of the costs immediately. Normally, you have to depreciate over 30 to 40 years.

Will this also mean that people will invest en masse?

I think we can reduce the enormous, truly enormous, investments in AI factories to this provision.

In effect, the government is paying for a significant portion of the investment.

So companies in that sector are currently indulging in extreme investments. You could almost say: the government is paying for it.

But that doesn't mean that the investment will actually generate revenue. In fact, I think a huge amount of investment will be lost. Building hardware is one thing. Hiring staff for it, selling products—all that still needs to be done afterward.

I'm not so optimistic about that, because of the overspending on data centers. There will soon be enormous competition there, and no one will make any money. Suddenly, there will be far too much capacity.

.
--- SBBSecho 3.31-Linux
* Origin: End Of The Line BBS - endofthelinebbs.com (1:124/5016)

On 11 Nov 2025, Joseph Pereira said the following...

In the US, Trump wants to stimulate factory construction by allowing factories and equipment to be depreciated in a single year.

What does that mean?

It means you can immediately deduct the millions you invest in a new factory from your profit in a single year.

So, if you already have a successful business, thanks to this provision, which was included in Trump's Big Beautiful Bill, you can invest and, as long as you make a profit, recoup most of the costs immediately.
Normally, you have to depreciate over 30 to 40 years.

Will this also mean that people will invest en masse?

Joseph's post overlooks the impact of Trump's full-expensing policy.
When that rule took effect, U.S. manufacturers and small shops alike saw an immediate surge in investment new machines, plant upgrades, and more hiring. After 2020, that energy fizzled.

Biden's term saw inflation soar, interest rates spike, and bonus depreciation start phasing out. Factory construction numbers flattened once adjusted for inflation. In real terms, private-sector investment growth fell behind the prior administration's pace. Trump's policy produced tangible capital formation; the later years produced stagnation. If we're measuring stimulus by
output, job creation, and investment enthusiasm, the comparison isn't close.

--- Mystic BBS v1.12 A48 (Windows/64)
* Origin: Capital Station BBS * Telnet://csbbs.dyndns.org * (1:267/150)

On 11 Nov 2025, Gregory Deyss said the following...

Biden's term saw inflation soar, interest rates spike, and bonus depreciation start phasing out. Factory construction numbers flattened once adjusted for inflation. In real terms, private-sector investment growth fell behind the prior administration's pace. Trump's policy produced tangible capital formation; the later years produced
stagnation. If we're measuring stimulus by output, job creation, and investment enthusiasm, the comparison isn't close.

This could explain why we saw Joe recently defending his term in office and talking shit about Trump.

IB Joe, Pronouns (FJB/LGB)
AKA Joe Schweier
SysOp of 4A 6F 65 73 42 42 53
-=JoesBBS.com=-

... Isn’t it a bit unnerving that doctors call what they do "practice"?

--- Mystic BBS v1.12 A49 2023/04/30 (Windows/64)
* Origin: JoesBBS.Com, Telnet:23 SSH:22 HTTP:80 (1:342/201)