Biblical and Constitutional Politics
The Trump Economy
By Gary F. Zeolla
On February 6, 2020, the day after Trump was acquitted in the Senate impeachment trial, all stock market indexes rose significantly. That was attributed to the acquittal, despite continuing concerns about the Coronavirus.
Asian stock markets surged Thursday after President Donald Trump was acquitted in an impeachment trial and China promised tax cuts and other help to businesses reeling from a virus outbreak (Trib. Asian).
The Dow ended up closing at an almost record high of 29,379. It went down some the next day, but it was still above 29k. Meanwhile, US consumer confidence is at a near record high:
U.S. consumer confidence in the fourth quarter of 2019 neared a historic high at 122 points on a scale of 54 to 138 points, according to The Conference Board’s latest Consumer Confidence Report.
The high confidence rate, which is just one point less than 2018’s historic high of 123 points, is likely the result of the county’s historically low unemployment rate at 3.5 and better spending intentions (FBN. U.S.).
There are some concerns the US economy might slow since the world consumer confidence is only at 107 points.
Some pundits and trade analysts expect positive growth, however, after President Trump and Chinese Vice Premier Liu signed Phase One of a potential U.S.-China trade agreement Wednesday (FBN. U.S. consumer).
In addition, the jobs market continues to surge beyond expectations, as seen in the January 2020 jobs report:
US job growth surges in January, with 225,000 added.
The final payroll number of 2019 surged past the estimate of 160,000 from economists…
Unemployment ticked up slightly to 3.6 percent, as more people were looking for work, the Labor Department said Friday. The labor force participation rate edged up slightly to 63.4 percent. Average hourly earnings, meanwhile, rose by 7 cents over the past year to $28.44.
“Taken together, the first report of 2020 is a healthy one — showing that a possible redux of the roaring twenties updated for the 21st Century isn’t off the table yet,” Daniel Zhao, Glassdoor senior economist, said (FBN. U.S. jobs).
The slight uptick in unemployment was due to the formerly disgruntled unemployed returning to the job market.
The Labor Department also said Friday that a half-million people streamed into the job market in January, though not all of them found jobs. That influx meant more people were counted as unemployed, and it boosted the jobless rate to 3.6%, from a half-century low of 3.5% in December (Trib. U.S.).
Plus, the trade deficit narrowed for first time in six years.
The U.S. trade deficit narrowed in 2019 from the widest in a decade, reflecting plunges in shipments from China and oil imports while giving President Donald Trump some evidence he’s delivered on pledges to reduce the gap.
The annual deficit in goods and services decreased for the first time in six years, narrowing 1.7% to $616.8 billion, Commerce Department data showed Wednesday [2/5/20] (Industry).
Peter Navarro, White House trade advisor, commented on FNC about all of this great economic news, “It’s a beautiful thing.”
Not Obama’s Economy
However, Dems are continuing to deny Trump is responsible for this booming economy. They are instead still trying to say it is due to Obama, who has now been out of office for over three years. But economist know better. The following are article titles from various opinion pieces on FBN in the days after Trump’s State of the Union (SOTU) Speech on Tuesday, February 4, 2020:
Trump SOTU victory lap on booming economy was smart – and Debbie Downer Democrats don’t know what to do. Stephen Moore.
America’s booming economy is single most important factor in the 2020 election. Ted Harvey.
The Trump economy and America’s real GDP -- Pro-growth agenda is clearly working. Andy Puzder.
A quote from the last article:
After just 36 months of President Trump’s leadership, with economic growth exceeding expectations, America’s real GDP is now more than a quarter of a trillion dollars higher than the experts anticipated. That’s more than $7 billion of extra economic activity every single month. No wonder unemployment is at a 50 year low and wages are rising (FBN. Andy).
In addition, Trump undid most of Obama’s policies. The job-killing Obamacare mandate, Obama-era regulations, the Paris Climate Accord, even NAFTA, are all now gone. They have been replaced by fewer regulations, tax cuts, and the USMCA. As such, this cannot be Obama's economy. It is totally Trump’s economy.
Furthermore, Obama added jobs that were lost in the recession and oversaw the normal recovery from a recession. Actually, Obama’s policies kept the recovery from being more robust. It was in fact the most lackluster recovery from a recession since the Great Depression, Moreover, if Hillary had won, we would probably be in a recession right now, given the normal ten-year cycle of such.
However, Trump’s policies have prevented the normal ten-year recession from occurring on schedule. Moreover, Trump’s economy is so robust, the formerly dejected unemployed who had given up on finding jobs are now reentering the work force and finding jobs.
Adding jobs and overseeing economic growth after a recession is relatively easy. To keep an economy humming along and to continue adding jobs a decade into a recovery is much harder to accomplish. But Trump is doing just that.
References:
Standard References, plus:
FBN. America’s booming economy is single most important factor in the 2020 election. Ted Harvey.
FBN. The Trump economy and America’s real GDP -- Pro-growth agenda is clearly working. Andy Puzder.
FBN. Trump’s economic ‘comeback’ vision gets THIS right about the tech sector and America’s future. Gary Shapiro
FBN. Trump SOTU victory lap on booming economy was smart – and Debbie Downer Democrats don’t know what to do. Stephen Moore.
FBN. U.S. consumer confidence nears all-time high in Q4.
FBN. US job growth surges in January, with 225,000 added.
Industry Week. US Annual Trade Deficit Shrinks for First Time in Six Years.
Reuters. U.S. trade deficit narrows in 2019 for first time in six years.
Trib Live. Asia stocks surge after Trump acquitted, China virus aid.
Trib Live. U.S. employers add a strong 225K jobs; unemployment up to 3.6%.
Wall Street Journal. U.S. Economy Added 225,000 Jobs in January.
The Trump Economy. Copyright © 2020 by Gary F. Zeolla (www.Zeolla.org).
The 2020 Election, the January 6 “Insurrection,” and Their Aftermath
Five books cover every aspect of the 2020 Election, the January 6 “insurrection,” and their aftermath. Starting with claims of fraud and irregularities in that election, to the tragic events of January 6, 2021 (J6; the so-called insurrection), the subsequent second impeachment of Donald J. Trump, to the public hearings of the J6 Commission in the summer and fall of 2022. Also reproduced in these books is all Trump had to say about all of these and related matters during this time period.
The above article was posted on
this website February 8, 2020.
The last four paragraphs were added February 24, 2020.
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