Trumponomics is working extremely well and it can for a long time if we don't screw it up.
I saw a headline in the Washington Post telling us that Trumponomics is not working, and I wondered what the heck these people must be smoking because obviously the economy is humming on almost all fronts. T
The reason they say his policies aren’t working or won’t work in the near future is because of Trump’s trade policies.
Trumponomics is actually a very simple concept. Get rid of unnecessary regulations and let people and businesses keep more of the money they earn, which will allow great compounding throughout the private sector.
We should all remember that a lot of economists predicted doom and gloom by now, and since they were way off they will just predict doom and gloom down the road a little. Few predicted the growth that we are having now so why would we believe their predictions for the future.
Let’s look at the current economic statistics to see how Trumponomics is working today:
- Economic growth of 4.2%,
- consumer and business confidence near record highs,
- Unemployment for all ages, education levels, sexes and races near record lows,
- unemployment claims at 50 year low,
- part time jobs for economic reasons are down more than one million,
- stock prices have hit record high over 100 times since Trump took office,
- capital spending for businesses up substantially,
- business and retail sales up,
- imports and exports up,
- oil production near record highs,
- median family income rising faster than at any time in over a decade,
- corporate profits are high,
- bonuses have gone up, wage levels are rising,
- take home pay is up more because of tax cuts,
- dividend income, interest income and capital gains income up.
Oil prices are actually below 2008 and 2012-2015, when incomes and economic growth were lower. Isn’t it amazing how more drilling and production works.
Government entities throughout the country are seeing extra revenue come in because of the surging growth. Higher stock prices, interest rates, dividends and capital gains are helping their (and everyone’s) pension funds.
Food stamp usage and disability claims are down, helping the budget. Health care costs and premiums look to stabilize in 2019 for the first time in a long time. Isn’t it amazing what more competition, freedom of choice and getting rid of the individual mandate will do
I am truly having trouble finding anything that indicates that Trumponomics isn’t working.
But since journalists support Democrats and more government, the WaPo puts out this.
So is Trumponomics working? With one significant caveat, the answer is no. For one thing, Trump’s trade policy is turning out to be worse than expected. For another, the growth surge mostly reflects a temporary sugar high from last December’s tax cut. Economists are already penciling in a recession for 2020.
Here's the link predicting recession. Fortune:
The panelists forecasted that the nation’s GDP would grow by 2.7% in 2019.
However, the NABE [National Association of Business Economists] panel also stated that the growth could be cut short by an upcoming recession, with two-thirds of the economists predicting that a recession will start by the end of 2020 and 18% believing that a decline could begin as soon as the end of 2019.
One of the biggest causes for the decline according to the economists are Trump’s current trade policies; three-fourths of the panelists predict that Trump’s imposed tariffs on steel and aluminum imports from the Canada, Mexico, and the European Union, as well as tariffs on Chinese imports, will trigger a global trade war as the nations look to retaliate.
As for trade, it seems that most economists didn’t mind the theory that manufacturing jobs were gone for good and that there was no harm in letting them to continue to flow overseas. Trumponomics is about more than simple growth. I believe it is very short sighted to not understand the long term risk if a dangerous country like China controls so many of the goods we need in our economy. Do any of these economist understand that China could cut off supplies any time they want? Do economists think that if China gets control of most of our manufacturing that they wouldn’t also go after services?
Have these economists not noticed that Europe, South Korea, Mexico and Canada are clearly willing to deal? Do they think China will let their economy completely tank by not giving in somewhat to Trump?
We were told that if Trump pulled out of the TPP that countries would stop trading with us. That shows a complete lack of thought. These countries need the U.S. because we are the biggest economy in the world.
We also hear how the tariffs will raise prices and then we are told that the tariffs are lowering grain prices. Why don’t we hear about the benefit to 100% of consumers from the lower grain prices? Doesn’t that reduce the sting of the minor tariffs on China?
There is absolutely no reason the economy won’t continue to grow substantially if we stick to Trumponomics. There is a great risk of recession if we move to the socialist policies the WP writers and others support. We can make growth collapse by reversing the corporate and individual tax cuts, going to single payer health care and adding back regulations. We can go back to the slowest economic recovery in seventy years which we got because of Obamanomics.
Photo credit: Gage Skidmore