The US economy grew at a 4.1% rate in the second quarter. This is a great figure and what’s better, it is part of a trend that we all know is happening – economic optimism, more jobs, more manufacturing jobs, more investment, and finally a sense that the so-called ‘great recession’ is over.
(There is more from CNBC about president Trump’s comments on the 4.1% figure, including details, at the end of this commentary.)
Friends, it was “the Obama depression” if you want to know what it really was. And it indeed is over. But this is just the beginning of a new era. We are not out of the woods by any stretch of the imagination.
Remember when Obama said that many manufacturing jobs would never come back? And when 4% growth was considered only a pipe dream in the “new normal” of lost hopes? When the Obama economy struggled along at 1.5% growth with jobs that even top Democrats had criticized as low quality, low pay and part time?
Indeed. This 4.1% figure is just more affirmation that Trump policies are working. We should look at this 4.1% as just the next step in a long climb out of the horrible Obama economy.
Ronald Reagan’s economic boom started in 1982 and ran all the way up to 2008!
And the Reagan boom would have continued except the government destroyed it by lending trillions to poor people to buy homes. Most of those loans went bust, taking down the whole economy.
The Obama depression started in September 2008, two months before Obama was elected. The stock market tanked the day after Obama was elected, showing no confidence. The Obama depression officially ended in June 2009 but there was no significant growth until 2014 and then the economy continued to lag until president Trump was elected.
This is because Obama and his Democrat friends had saddled the economy with taxes and heavy regulations, including ‘green’ laws. The only thing keeping the overall US economy alive during the Obama presidency was strong growth in the non-union, low-tax, low-regulation and conservative states like Texas, Georgia, Arizona, Florida and Tennessee which Trump won in 2016.
It is important to keep in mind that president Trump is seeking to revamp the US economy for the long term. We can expect strong growth for years into the future as long as his policies remain in effect. Most economists agree that the economy today is in great shape and poised for better things.
Throughout the Obama years, tens of millions of Americans had simply given up hope. And that is the worst thing. Obama even asked mockingly in 2016 if Trump was going to wave a “magic wand” to get jobs back.
No, president Trump has implemented common-sense policies that always work. These are the policies that dominate in the growing, dynamic American states where the people are prosperous and optimistic, that have been gaining population for decades as Americans flee the liberal states like Vermont, New York and Illinois with their withered economies.
Most importantly president Trump is bringing manufacturing jobs back to our shores. Those are the most important wealth-creating jobs since they take a worthless commodity like iron ore out of the ground – a lump of iron has no value in its own right – and convert it into steel and cars and washing machines that have a distinct monetary value.
American manufacturing jobs peaked at 19 million in 1979. Today they are 12.5 million in a much larger economy. In other words, over the last 40 years, America has seen the destruction of, or the failure to create, tens of millions of manufacturing jobs.
President Trump is starting us on a long-term path to increase manufacturing jobs, so as to re-establish hope for the US middle class. 4.1% is a step along the way but by no means the end of it.
Here is more from CNBC about president Trump’s remarks after the GDP announcement:
President Donald Trump pitched his economic record to voters Friday, boasting that strong numbers released earlier in the morning were “sustainable” and blasting Democrats for wanting to “raise everybody’s taxes.”
“We’re going to go a lot higher,” Trump said, referring to the report that showed a 4.1 percent rise in gross domestic product during the second quarter. It was the highest quarterly jump in nearly four years.
During a speech on the White House South Lawn, he predicted that the country was on track for its highest annual growth rate in over 13 years.
“As the trade deals come in one by one, we’re going to go a lot higher than these numbers, and these are great numbers,” he said.
… He called the numbers “very, very sustainable” and predicted that the U.S. would “do extraordinarily well” in its third-quarter GDP report.
The president cited the low unemployment rate among black Americans, and repeated his claim that “we’ve been ripped off by the world,” a point that the president has used to make his case for renegotiating trade deals with foreign leaders.
… “The trade deficit, very dear to my heart because we’ve been ripped off by the world, has dropped off by more than $50 billion,” Trump said Friday.
He compared his economic numbers to those of Presidents George W. Bush and Barack Obama.
“During each of two previous administrations, we averaged just over 1.8 percent GDP growth. By contrast, we are now on track to hit an average GDP annual growth of over 3 percent, and it could be substantially over 3 percent,” Trump said. “Each point, by the way, means approximately $3 trillion and 10 million jobs.”