It’s Not Just in Your Head, the Web Is Slowing Down
It’s not your imagination, and it’s not because AT&T — and possibly others — is purposefully cutting speeds to unlimited data plan users. The Internet is slowing down. The reason: Websites are growing in size, causing slower load times.
The average website is now 2.1 MB in size, compared to 1.5 MB two years ago, according to HTTP Archive, an Internet data measurement company. Multiple reasons can explain this increase in size.
Sites have been adding more content in an effort to drum up traffic, such as videos, engaging images, interactive plug-ins (comments and feeds) and other code and script-heavy features. Websites are becoming more and more technically advanced, and other sites have to keep adding features to stay competitive.
To keep up with the rapidly increasing number of users accessing sites on various platforms, developers are offering more versions of websites as well as apps to accommodate all devices, including smartphones, watches, tablets, and other gadgets. All of these versions require additional code, ultimately adding to the weight of a given website.
Then there are the advertisers who want to get the user’s attention by creating dramatic displays for their products that consume even more bandwidth.
Websites also want to know who is visiting their pages, both welcome and unwelcome visitors. New tools that track and analyze visitors have increased in popularity, as well as stronger encryption technology to add more security. These security measures and trackers require more code, again slowing load times.
Unfortunately for websites trying to keep up with the times, Google has just introduced a new ‘Slow to Load’ warning sign in mobile search results. Since mobile searches account for more than half of the total Google searches in 10 countries, Google wants to enhance user experience for those on their mobile platform.
Although the weight of a website isn’t all that contributes to slow loading, it’s a major factor. Other reasons include users overusing data, a poor connection, or a high level of traffic in the mobile network.
Google also changed its algorithm in April, so now ‘mobile friendly’ sites are ranked higher on search results, while those that fail to meet its criteria are ranked lower.
Although the internet is only slowing by a matter of seconds, it’s still slowing down. All the more reason for a user to become frustrated with a page that’s taking a couple extra seconds to load and go to a competitor’s site.
Chart of the Day: A Buying Binge Driven by Tax Cuts
The Wall Street Journal reports that the tax cuts and economic environment are prompting U.S. companies to go on a buying binge: “Mergers and acquisitions announced by U.S. acquirers so far in 2018 are running at the highest dollar volume since the first two months of 2000, according to Dealogic. Thomson Reuters, which publishes slightly different numbers, puts it at the highest since the start of 2007.”
Number of the Day: 5.5 Percent
Health care spending in the U.S. will grow at an average annual rate of 5.5 percent from 2017 through 2026, according to new estimates published in Health Affairs by the Office of the Actuary at the Centers for Medicare and Medicaid Services (CMS).
The projections mean that health care spending would rise as a share of the economy from 17.9 percent in 2016 to 19.7 percent in 2026.
Trump Clearly Has No Problem with Debt and Deficits
A self-proclaimed “king of debt,” President Trump has produced a budget that promises red ink as far as the eye can see. With last year's $1.5 trillion tax cut reducing revenues, the White House gave up even trying to pretend that its budget would balance anytime soon, and even the rosy economic projections contained in the budget couldn’t produce enough revenues, however fanciful, to cover the shortfall.
The Trump budget spends as much over 10 years as any budget produced by President Barack Obama, according to Jim Tankersley of The New York Times. And it projects total deficits of more than $7 trillion over the next decade — "a number that could double if the administration turns out to be overestimating economic growth and if the $3 trillion in spending cuts the White House has floated do not materialize in Congress,” Tankersley says.
Trump — who once promised to both balance the budget and pay down the national debt — isn’t the only one throwing off the shackles of fiscal restraint. Republicans as a whole appear to be embracing a new set of economic preferences defined by lower taxes and higher spending, in what Bloomberg describes as a “striking turnabout” in attitudes toward deficits and the national debt.
But some conservatives tell Tankersley that the GOP's core beliefs on spending and debt remain intact — and that spending on Social Security and Medicare, the primary drivers of the national debt, are all that matters when it comes to implementing fiscal restraint.
“They know that right now, a fundamental reform of entitlements won’t happen," John H. Cochrane, an economist at Stanford University’s Hoover Institution, tells Tankersley. "So, they have avoided weekly chaos and gotten needed military spending through by opening the spending bill, and they got an important reduction in growth-distorting marginal corporate rates through by accepting a bit more deficits. They know that can’t be the end of the story.”
Democrats, of course, have warned that the next chapter in the tale will involve big cuts to Social Security and Medicare. Even before we get there, though, Tankersley questions whether the GOP approach stands up to scrutiny: "This is a bit like saying, only regular exercise will keep America from having a fatal heart attack, so, you know, it's ok to eat a few more hamburgers now."
Part of the Shutdown-Ending Deal: $31 Billion More in Tax Cuts
Margot Sanger-Katz and Jim Tankersley in The New York Times: “The deal struck by Democrats and Republicans on Monday to end a brief government shutdown contains $31 billion in tax cuts, including a temporary delay in implementing three health care-related taxes.”
“Those delays, which enjoy varying degrees of bipartisan support, are not offset by any spending cuts or tax increases, and thus will add to a federal budget deficit that is already projected to increase rapidly as last year’s mammoth new tax law takes effect.”
IRS Paid $20 Million to Collect $6.7 Million in Tax Debts
Congress passed a law in 2015 requiring the IRS to use private debt collection agencies to pursue “inactive tax receivables,” but the financial results are not encouraging so far, according to a new taxpayer advocate report out Wednesday.
In fiscal year 2017, the IRS received $6.7 million from taxpayers whose debts were assigned to private collection agencies, but the agencies were paid $20 million – “three times the amount collected,” the report helpfully points out.
Like what you're reading? Sign up for our free newsletter.