Trump Economy is Thriving but More Reforms are Needed

The US economy produced just 75,000 jobs in May. This was far below expectations and the Trump haters immediately seized on the number to claim that the economy is slowing down and that Trump must go.

But the economy has had spectacular numbers in past months and so the average is very good.

It is also important to remember that there are many measures for a good economy and they are mostly positive today. Those measures include the overall economic confidence of consumers and business owners which both are very high. This is a great sign. Optimism makes for good things.

Then there’s the stock market which has soared under president Trump. reported on November 9, 2016 after Trump’s election was confirmed:

U.S. stocks closed at session highs Wednesday as Wall Street weighed a surprising victory by Republican Donald Trump in the presidential election

The S&P 500 rose 1.1%, the Dow Jones Industrial Average gained 1.4%, rising by 256 points, and the Nasdaq rose 1.1%.

European stocks traded higher following losses earlier in the trading session.

On the other hand here is the report from the day after Obama was re-elected in 2012:

The Dow industrials lost more than 300 points in a sell-off on Wednesday that drove all major US stock indexes down over 2 per cent in the wake of the presidential election as investors’ focus shifted to the looming “fiscal cliff” debate and Europe’s economic troubles.

Here is two days after Obama’s first election in 2008:

Obama was elected and the Stock Market has had it’s largest 2 day drop in history. Coincidence?

The market is not excited about Obama’s plan to increase corporate taxes, capital gains tax, and the maximum tax rate. Obama’s promise to bankrupt anyone trying to set up a clean coal plant doesn’t seem pro business either. Democrats are discussing a government take over of our 401K retirement plans that would pull billions of dollars in investments out of the market. No wonder the market is reacting to Obama’s election the way it is.

The market dropped 486 points the day after Obama was elected in 2008. On the other hand Wall Street has surged a whopping 40% since Trump was elected because the president has instilled confidence, repealed regulations, lowered taxes, fought for better trade deals and generally been a cheerleader for US growth.

But while the economy grew 3% in the first quarter 2019 we are not having strong growth at 4% or 5% or 6% as we did in the 1950s and 1960s. Why not? Two reasons:

*The very socialistic, high-tax and liberal states like New York, New Jersey, Illinois, Connecticut and California are performing poorly and are dampening the national economy. They are not generating the growth that they could or once did. Most of the solid growth is coming in the conservative states like Texas, Florida, Tennessee, the Carolinas, Utah, etc.

*The American economy would be doing much better if the global economy were doing better. But it is not. Europe and Japan, which together represent about 25% of the global economy (roughly $21 trillion annually or the same as the US alone) have low-growth, high-tax, highly-regulated socialistic economies with growth rates generally around or under 2%.

These laggard economies are thwarting the global economy. If Europe and Japan were roaring along at 3% or 4% then the American economy would be doing 4% and 5%. Easy. So socialism harms us even when it is practiced in other nations.

Thus we need to be happy that the Trump economy is doing 3% after 8 years under Obama when it was averaging 1.5%.

One recent poll said that 71% of Americans believe that the Trump economy is doing good or excellent. That number alone is enough to re-elect the president.

But there are two significant factors that need to be addressed in order to have a permanently thriving economy with even better jobs and higher incomes:

*Our national debt needs to be reduced: Our current national debt-to-GDP ratio is 105%. That means that our total national debt ($22 trillion) is slightly more than the annual Gross Domestic Product of our economy (which is $21 trillion).

105% is a bad number. Anything over 60% is bad (Japan is a whopping 223%). Obama took us from 60% to 105% through massive spending including his $800 BILLION ‘stimulus’ of 2009, which added $800 billion to our debt but did nothing for the economy since most of it was stolen by Obama’s political cronies like labor unions.

That 105% number needs to go down through economic growth that produces more revenue for the treasury. Except that Democrats spend every penny that comes in, and more, making it impossible to reduce the debt.

We need to keep the economy strong and reduce wasteful spending on welfare programs, ‘green’ programs, bloated federal agencies, etc., i.e., get more money coming in and less going out. US taxpayers currently dish out $500 BILLION every single year in interest payments on the debt but not to pay off any of the debt(!)

Liberal media types love to say that our national debt is not hurting us. They say this in order to make us think that our massive debt is acceptable and that we can increase it without fear.

It is not acceptable, and to prove it just think about common sense – would you rather personally have high debt or low debt?

The answer is obvious. Reducing the debt will free up capital for investment and create more jobs and so Americans will have jobs instead of relying on taxpayers.

*We need many millions more manufacturing jobs: Manufacturing jobs are the ones that create wealth and build the middle class. They do so by taking worthless resources out of the ground like iron ore – which has no intrinsic value in itself – and turning it into steel and then into cars or lawn mowers or washing machines that have a monetary value. This is how manufacturing jobs “create wealth”.

American manufacturing jobs peaked at 19 million in 1979. Today there are only 12.5 million in a much larger population. Thus estimates that 20 million manufacturing jobs have either been destroyed or not created since 1979.

It gets worse. In the mid-1960s we had 15 million manufacturing jobs and 8.7 million government jobs. Manufacturing jobs “create” wealth while government jobs “consume” wealth and so the balance was a good one.

Today we have 22.5 million government jobs on the federal, state, county and local level but just 12.5 million manufacturing jobs. So we need to turn that around significantly, to cut millions of government jobs and replace them with private-sector manufacturing jobs. This is precisely what president Trump is trying to do.

We also need to address the Americans who are not counted in the official unemployment figures. There are literally tens of millions who are not counted; they have totally dropped out of the workforce and are not even on the economic radar.

If they were counted the unemployment rate would be 10% not 3.6%. Just go into cities all across America and you will see millions of people walking around all day doing nothing. This needs to end.

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