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Trump Economy Accelerates, Leftists Hardest Hit

Trump EconomyRemember how Barack Obama repeatedly rationalized the economic malaise that defined his presidency by scapegoating everything from the 2011 Japanese tsunami to ATMs?

This was Obama in 2011, when it was already clear that his economic policies were failing:

There are some structural issues with our economy, where a lot of businesses have learned to become more efficient, with a lot fewer workers.  You see it when you go to the bank and use an ATM – you don’t go to a bank teller.  Or you go to the airport, and you’re using a kiosk instead of checking in at the gate. 

Well, news flash:  We’ve added a lot more kiosks since that time, particularly in locales where liberals counterproductively hiked minimum wage requirements.  Yet somehow, America’s economy has turbocharged since President Donald Trump entered the White House.

In fact, the Trump economic acceleration has occurred despite real headwinds, such as an economic slowdown in Europe, China and elsewhere across the globe, as well as the federal government’s partial shutdown earlier this year and the Federal Reserve Board’s foolish rate increase last December, which Chairman Jerome Powell acknowledged when the evidence of the error immediately accumulated.

The latest occasion for recognizing the stark contrast between Obama and Trump arrived last week, when the Commerce Department announced that the American economy grew an astonishing 3.2% in the first quarter of 2019.

That exceeded economists’ consensus forecast of growth well below 2%, with some banks forecasting 1.1% growth.  That growth rate also occurred despite such handicaps as the government report that the winter government shutdown artificially reduced growth by 0.3%, among other headwinds noted by The Wall Street Journal:

Yet the government shutdown took some 0.3% off growth and that won’t be repeated in the second quarter.  Auto sales took 0.49% off GDP in the quarter, but sales rebounded in March heading into the second quarter.  Overall consumer spending contributed a relatively small 0.82% to GDP, perhaps due to the fall in consumer confidence after the stock market swoon in the last months of 2018.  With job growth strong and wages rising, consumers should contribute more to the expansion the rest of the year. 

In other words, the Trump economy continues to flourish despite substantial headwinds, and promises even greater future growth, whereas Obama scapegoated insubstantial factors to excuse his economic malaise.

And for readers who don’t preoccupy themselves with quarterly U.S. economic data, here’s why our 3.2% growth number is particularly significant and symbolic.

Post-World War II, the U.S. has averaged 3.3% economic growth per year.  Then came the Obama Administration.  Not once during his presidency did we even reach 3% growth, let alone the post-war 3.3% average.  For the first time in our history, we completed ten years without reaching 3% during his tenure, and we averaged just 1.88% annual growth under Obama.

That wasn’t what Obama promised us, of course.  While selling his trillion-dollar “stimulus” package, the Obama Administration predicted that unemployment would never exceed 8%, and that economic growth would hit 4.3% for both 2011 and 2012.  Instead, unemployment exceeded 8% for the longest consecutive monthly period in recorded U.S. history, and as noted earlier we never even hit 3% growth.

By the end of the Obama Administration, he and his apologists predictably changed their tune.

Instead of promising superlative results from Obama’s economic policies, they began assuring us that 3% growth was no longer possible, due to “secular stagnation,” the new impossibility of productivity gains, Baby Boomer retirements and other various excuses.  Sub-3% growth was, according to them, the “new normal.”

In that vein, Obama and his apologists mocked Trump’s promises to return to 3% growth through deregulation, tax cuts and reversing Obama economic policies.  Lawrence Summers, Obama’s chief economic advisor, ridiculed the idea in May 2017:

Apparently, the budget forecasts that U.S. economic growth will rise to 3.0 percent because of the administration’s policies, largely its tax cuts and perhaps also its regulatory policies.  Fair enough, if you believe in tooth fairies and ludicrous supply-side economics. 

Or recall the words of New York Times columnist Paul Krugman, one of leftists’ favorite economists, who wrote in January 2018, “Expect a lot of boasting, but 3% growth is still nonsense.”

Well, we’ve achieved exactly that.

In just his first full calendar year as President, Trump’s economic policies of deregulation, tax cuts and more limited government brought us 3% growth for 2018, the first year in which his tax cuts took effect.

Additionally, median incomes are finally rising at a more respectable level after stagnating under Obama, and stock markets have reached new record highs.

And now, despite mainstream economists’ predictions of an economic slowdown, our economy actually accelerated to 3.2% in the first quarter of 2019.

So yes, Mr. Summers, we do believe in the supply-side economics that Presidents John F. Kennedy, Ronald Reagan and Donald Trump have repeatedly proven effective, yet which you continue to label “ludicrous.”  The question is when people like you will smell the coffee and admit otherwise.

Reprinted with permission from - CFIF.org - by Timothy H. Lee

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Jack

President Trump is the best thing that has happened to this country since Ronald Regan. Even with the Left pushing and prodding everything and every statement he makes, he and the citizens of this great nation are succeeding. With all the good that has and continues to be done how could anyone in their right mind not support our President? I guess I answered that myself.

Wayne D Peterkin

What President Trump and conservatives have proven once again is that fewer regulations, modest interest rates, and lower taxes can stimulate and sustain an economy like nothing else can. Government interference and mandates are counter-productive. It should be logical and intuitive, but Democrats and liberals in general just have never grasped basic economics. Obama couldn’t spell “economics”. Keep external business operating costs as low as possible and it allows businesses to flourish. Doesn’t seem that complicated to me.

Kim

Over 40 years of owning a small business, my most difficult years were those during the Obama administration. Many of my colleagues couldn’t make enough income to prevent losing their businesses. Several went bankrupt and lost everything. A few were lucky to find part-time jobs or low-wage full time jobs that paid the mortgage. In the high cost-of-living blue state that I was living in, my sales dropped to unsustainable levels for several years. When sales are a large portion of our income, our personal “GDP” is much more dependent on consumer spending than the economy is as a whole. But in a shaky economy, sales on not-absolutely-essential items come to an abrupt halt. I was lucky to have savings and a retirement account that I could raid. We’ve survived recessions before, picking up the pieces and continuing to earn a living. But Obama—who didn’t build my business, by the… Read more »

Frank S.

Another hugely important issue, yet not reported on enough, is how Trump is standing up to China and their ridiculous trade policies/cheating. Clinton, Bush ’43 and Obama just buried their collective heads in the sand and hoped China would one day start playing fair and become a “team player.” Idiots! We had a saying in the military…”Hope does not a good strategy make.” When Trump and his economic team finally get a deal BOTH sides can live with (remember, China needs to “save face”–it’s an Asian thing), just watch the economy take off. Of course, Congress needs to approve and pass the USMCA deal too. Imagine where the US could be if we had a Congress that put the country first versus partisan politics. Maybe then we could pass some balanced budgets and begin to formulate a plan to deal with the $22,200,000,000,000 deficit.

Phillip Pucher

They never will because they can’t stand being wrong.

Martha Beimer

The Obamanation promised in his campaigns to change America. He did. For the worse. We have needed a ruthless businessperson in the Oval Office for many decades. Ronald Reagan was pretty good but he was still an actor turned politician. Actors act. Politicians kiss behinds. Ruthless and serious business people know how to grow finances. It is their job. Good job, Mr. President, Donald Trump. Glad you are on our side and not the side of changing our nation into a third world country. God bless America and God bless you. God is good.

CHERYL FITZGERALD

God bless America… ??
Daniel 2:21

Rick J.

Obama and Summers are socialists who are globalists. They have no idea how real economics work.

Garland

The Democrats would rather do business with the Devil than admit that Pres Trump is probably the Greatest Pres in my lifetime and I will be 85 in 3 months

Phyllis Poole

These people who admonish our president Trump are not grown up. They are children in adult bodies and clothes. I just would hope for some kind of test we should have to take to qualify anyone to vote! Age is not the answer.
Since that’s not going to hdppen then we had better pray hard because if another dem or socialist gets in power we are doomed again for failure. I also have been made aware that the Muslims aim is to declare Sharia law and they are being voted in to our gov offices.
Michigan has one!
Start talking about this! It’s time to get scared and PRAY!!!!

Emmett

I wish the insane, liberal losers would get real. I guess they’ve got to protect their riches at the cost of everyone else. Come on Dems quit being suckers and see your Reps for what they are: spineless scumbags who care nothing about you and who would abandon you at the drop of a hat. DJT is doing a bang up good job. MAGA or doomsday. Which do you prefer?

Big Al

At some point we all realize that the Left has nothing to offer.

Dick

The illusion is not working former President as we know better and are fed up with the whining. Go, President Trump!

1

Silas Longshot

Amazing how President Trump has accomplished more that any president before him, never mind a economically clueless moron like 0bama who blamed every fault in his reign on Bush, said jobs were never coming back (that he chased out of the USA), etc. And all this in the face of 100% democrat opposition, 98% negative, hate filled gossip rag level MSM coverage, RINO sabotage of bills and mediocre republican congressional action. Imagine what could have been done with some cooperation and respect by the media!

PAUL

IF PRES. TRUMP WOULD LIKE 4% GROWTH , HE SHOULD STUDY THE FAIR TAX.

Todd Wingard Taylor

The moment the socialistic “Red Coats” cross the line it is a call to arms. We must stand, defend and protect our Constitution; to preserve American ideals, guaranteed by our Bill of Rights and the blood of those who willingly laid down their lives throughout history to preserve or freedoms; freedoms once lost is not easily regained! Lets leave a lasting legacy of sacrifice for the freedom we have enjoyed for our grandchildren and to generations to come. We must resist socialistic ideals at every turn; we must reject it and see it for what it is pure evil; let us make our declaration to fight for what is right, honorable and true.

dino

But the democ rats continue to bash the man that we,the AMERICAN people elected.This judiciary committee is almost a bigger joke than NObamba,but its not a joke because barry is still continuing to divide AMERICA.He is NOT a person that was born in AMERICA.If this was any other country they would not put up with his bull exhaust.And this Nadler character is an idiot with power.

Thomas H.

Unfortunately, the “unbiased” media line is that ObeyMe still had a higher percentage growth than Trump, and, by the way, there’s that coming economic collapse which is always just around the corner (which they themselves are trying to bring about).

Neal Christensen

Remember when Obama was talking about jobs that went overseas or just disappeared? “Those jobs are gone; they’re not coming back”.

Steve Greenwell

For all the left’s belittling the economy, or giving Obama credit for it, the economy is doing mostly well. The American people, pursuing their semi-enlightened self interests, deserve the credit. What Pres. Trump deserves credit for is getting the government out of the way of the pursuit. Now if the labor participation rate can be improved…..