A record-setting stock market is just one of the big effects Trump's policies are having.
By US News•
The supposedly smart people said Donald Trump would destroy the U.S. economy if he were elected president.
They were wrong. On Thursday, the Dow broke 25,000 for the first time in its history – a meaningful expression of investor confidence in the future. Trump’s policies of deregulation, which have been moving ahead at full steam even before the tax cut bill passed just before Christmas, have helped push the stock market up by a third which, economist Arthur Laffer estimates, works about to about a $6 trillion increase in the nation’s net wealth.
That may not be historic – there may be periods in which wealth has increased at a faster rate – but it sure is impressive. Especially since the same smart people who’ve been telling us Trump would wreck the economy spent the Obama years explaining annual growth at less than 3 percent (and likely closer to 2) was the new normal.
It’s still a little early to proclaim “happy days are here again” but, as the Magic 8 Ball puts it, “all signs point to ‘Yes'” as far as whether there will be a period of protracted economic growth. That Continue reading
It's a good start, but it can't be the end of the GOP's economic efforts.
By US News•
The Republicans have kicked off the New Year with an earnest effort to sell the American public on the benefits of the tax bill just passed. It’s better than nothing, but if they hadn’t put the cart before the horse in the first place, they might not be in as much of a mess.
To be sure, achieving the first major overhaul of the U.S. tax code in 30 years without the single vote of a single Democrat is a considerable accomplishment. And, unlike the Affordable Care Act – with all the regulations and other nonsense Barack Obama piled on the economy in his first two years – the Tax Cut and Jobs Act of 2017 will be a boost to the economy rather than a drag. Still and all, telling the voters they should be for it because it puts more money in their pockets (or, more accurately, leaves it there in about nine out of 10 cases) doesn’t really constitute a Reaganesque vision for a more prosperous America in which each citizen has a vested share.
Hopefully things will turn towards the better, and soon, meaning the Republicans will retain control of Congress through 2020 and be able to pass additional tax cuts, continue to lessen the size of government, remove unnecessary and counter-productive controls on productive economic activity, and set the stage for another long boom like the Reagan tax cuts kicked off back in the early 80s. But time and the narrative are not yet on the GOP’s side.
Like it or not, even with relatively low rates of inflation for much of the last decade, the purchasing power of the dollar has declined. Families are felling pinched, which is part of the reason many of Continue reading
by Ali Meyer • Washington Free Beacon
California is projected to have a $15 statewide minimum wage by 2022. Economists project this will lead to a loss of 400,000 jobs, according to a report from the Employment Policies Institute.
Currently, the federal minimum wage is $7.25. California’s is $10.50, which is one of the highest minimum wages in the United States. California’s intent to raise it to $15 by 2022 will create the largest gap between a state minimum wage and the federal wage in U.S. history.
“One might argue that a higher minimum wage is justified in California because of its relatively high cost of living compared to the typical state,” the report says. “On the other hand, one might be concerned about whether the higher minimum wage in California causes job loss for low skilled workers, and whether the effects differ in the cities where the cost of living and wages are relatively high as compared to rural areas or less expensive cities.”
California has consistently raised the minimum wage since 2001, even higher than what was mandated by federal law. The study finds that this increase has led to a decline in employment.
By Newt Gingrich • Fox News
The left-wing media and the elites never seem to tire of being wrong.
Remember in May when President Trump said his policies would spur the U.S. gross domestic product (GDP) to grow at a rate of 3 percent or higher? The so-called experts insisted that it was unrealistic, highly unlikely, and probably impossible.
Some of these experts suggested 3 percent growth could only happen if our immigrant population doubled over a decade or the nation went to a six-day work week. They said even if unemployment fell to zero, we still wouldn’t get close.
Imagine their surprise then when the Commerce Department announced on Friday that the GDP has grown at 3 percent – for the second quarter in a row. Continue reading
by Justin Haskins • Philly Inquirer
Shortly after being sworn into office in January 2009, President Obama, along with Democrats in Congress, spent trillions of dollars on government bailouts, stimulus packages, and various social welfare programs – all passed with the promise they would reverse one of the most significant economic crashes the country has experienced.
After nearly eight years in office, though, Obama has failed to deliver on many of his campaign promises and has left America worse-off than it was when he entered the White House.
During the Obama administration, there hasn’t been a single year in which the nation’s gross domestic product grew at 3 percent or higher, according to the nonpartisan Congressional Research Service. That’s a first for a modern president. Continue reading
China’s global dominance, something analysts say is inevitable, will have to wait.
by Gordon G. Chang • The National Interest
Last Monday, at the conclusion of China’s closed-door Central Economic Work Conference, Beijing’s public relations machine went into high gear to show that the country’s leaders had come up with a viable plan to rescue the economy.
Unfortunately, they do not now have such a plan. In reality, they decided to continue strategies that both created China’s current predicament and failed this year to restart growth.
The severity of China’s economic problems—and the inability to implement long-term solutions—mean almost all geopolitical assumptions about tomorrow are wrong. Virtually everyone today sees China as a major power in the future. Yet the country’s extraordinary economic difficulties will result in a collapse or a long-term decline, and either outcome suggests China will return to the ranks of weak states. Continue reading
by Kenneth Bloomquist
Standing before an audience of college students, President Obama remarked that “As Americans, we can and should be proud of the progress that our country has made over these past six years. This progress has been hard, but it has been steady and it has been real. And it’s the result of the American people’s drive and their determination and their resilience, and it’s also the result of sound decisions made by my administration.” These remarks sound more defensive than confident. The President asserted that Americans should feel proud of the modest economic gains his administration frequently cites, but given that over half of Americans still consider the economy to be meandering through a recession it seems they have overwhelmingly rejected his outlook and chosen to remain humble instead.
Perhaps they’re being overly pessimistic? In the President’s defense, the metrics commonly used to measure the duration of recessions do indeed place the end of the Great Recession in 2009. Since then, GDP has risen slowly, but steadily, at an adjusted rate of just over 2% per year. The unemployment rate has fallen from its 2009 high of just under 10% to just under 6%, and new jobs are being created at a pace which is improving with time. And yet despite the graphs and charts, Americans refuse to be optimistic no matter how often they are told to be. The economy as described in press conferences doesn’t seem to be same one which most Americans live and work in, where family and friends remain unemployed or underpaid, where they have been passed over for raises, and where there just isn’t enough income leftover to save. Americans may not all have advanced economics degrees, but they are intuitively aware when times are good and when times are bad, and they remain skeptical even when bombarded by a steady stream of rose-tinted statistics. Continue reading
by Heather Long • CNN
They have some grist to work with.
Even though the economy is way ahead of where it was four years ago, Americans aren’t happy. Half of the country flat out disapproves of how the president is handling the economy, according to recent Wall Street Journal/NBC poll.
Even more alarming is the return of pessimism. Take a look at Gallup’s U.S. Economic Confidence Index. It’s measured weekly, and the first August reading is negative — the lowest since last October. The jitters are back. Continue reading
by Frank Camp • IJReview
According to a new study by Pew Charitable Trusts, using data from 2000-2013, the middle class population in America has “shrunk” in all 50 states:
The states that have suffered the most recently are:
2000: 54.6% middle-class
2013: 48.9% middle-class
Total loss: 5.7%
2000: 50.9% middle-class
2013: 45.7%% middle-class
Total loss: 5.2%
2000: 52.6% middle-class
2013: 47.5% middle-class
Total loss: 5.1%
States that have fared the best recently are:
And secret friend of the one percent.
by Jay Cost • The Weekly Standard
In last week’s State of the Union address, President Barack Obama came across as the ultimate class warrior. His domestic agenda consists of more spending on roads and infrastructure, new entitlement programs for community college and preschool, and tax preferences targeted to low- and middle-income earners. All of this he would pay for with new inheritance taxes on the wealthy, a hike in the capital gains tax, and a special levy on the biggest financial institutions.
But don’t be fooled. Obama may seem like the newest member of Occupy Wall Street—chanting “We are the 99 percent!”—but his record shows him to be a corporate liberal, and a closer look at last week’s proposals confirms it. Continue reading
Official statistics ignore the real hardships families face.
By Stephen Moore • The Washington Times
The big news from this week’s State of the Union address is that the economic “crisis is over.” Apparently, we’ve been rescued from a second Great Depression and everything this president has done to fix the economy has worked. All that was missing from Mr. Obama’s celebration was the old “Icky Shuffle” end zone dance.
This no doubt came as a bit of a shock to voters since the economy has been sickly for a long, long time. As recently as this fall, half of Americans were saying that the country is still in recession.
Conditions have improved in the last six months for sure, with growth accelerating, inflation low and stable, hiring picking up and gas prices tumbling.
Still, if things are as good as the White House says they are, why do we feel so bad? Why are we collectively so worried about the fragile future of our nation? Continue reading
by the Oklahoman Editorial Board
Thus it was no surprise that he parroted a Reagan trope in recently asking the question of whether Americans are better off today than when he took office — and then answering his own question by concluding that “the country is definitely better off than we were when I came into office.”
For Reagan, it was a campaign strategy drawn as a weapon against Jimmy Carter in 1980. Are you better off, he asked voters, than you were four years ago?
Such comparisons aren’t unique to Reagan and Obama, of course, but Reagan put his own stamp on it — quite successfully as it turns out.
“By every economic measure,” Obama told college students the other day, “we are better off than when I took office.” So not only has this president adopted the Reagan line (even crediting Reagan). He’s turned it into yet another example of repeated, robotic rhetoric in the endless campaign speeches made by a man “who is not running for anything except the exit,” in the words of Caroline Baum, a former Bloomberg News columnist. Continue reading
The number of people collecting paychecks rose more than had been expected and the tally of people counted as jobless fell, placing the unemployment rate — 5.9% — at its lowest level since 2008.
While the trends are positive, they offer only distant hope to a middle class that is taking home less pay than it used to and can only watch as the wealthy enjoy ever greater prosperity.
It wasn’t supposed to be this way under President Obama, tribune of ordinary folks who, as he likes to say, play by the rules. Continue reading
by Peter Huessy
Russian President Vladimir Putin annexes the Crimea in gross violation of international law. What should America do, if anything?
There are many different ideas. Some suggest doing nothing. Some assert we cannot do anything. Others feel the consequences of letting such aggression stand will be serious.
The country’s divisions are certainly reflective of how divided on this Americans are.
What then is the proper role for America in the world that both keeps us safe and enhances our prosperity? Continue reading
It’s amazing how little President Obama has learned about economics in his four and a half years in the White House. Growth, incentives, tax reform, tax increases, private investment, the middle class, a second great depression, the sequester—all these issues have one thing in common: Obama doesn’t understand their role in our economy.
Nor does he appear interested in finding out. Members of the now-defunct President’s Council on Jobs and Competitiveness have privately talked about Obama’s economic shallowness. After the 2010 election, he invited four conservative economists to the White House. When former Congressional Budget Office director Douglas Holtz-Eakin broached the subject of the economic cost of Obamacare, the president dismissed it as politics, not economics.
Obama seems oblivious to the feeble recovery his policies have produced since the recession bottomed out in June 2009. The jobless rate is 7.3 percent. But if the millions who’ve dropped out of the job market altogether since Obama took office in January 2009 were counted, the unemployment rate would be 10.8 percent. “In other words, the United States faces a permanently larger pool of jobless Americans,” says the American Enterprise Institute’s James Pethokoukis. Continue reading