Lost In The Partisan Hype

Guy Benson posted an article today at Townhall about the American economy under President Trump.

The article quotes a Wall Street Journal article listing economic milestones:

The number of Americans claiming new unemployment benefits has never been so low for so long.  Initial jobless claims, a proxy for layoffs across the U.S., decreased by 9,000 to a seasonally adjusted 233,000 in the week ended April 7, the Labor Department said Thursday. This means claims have now held below 300,000 for 162 consecutive weeks, cementing the longest streak for weekly records dating back to 1967...The current streak eclipsed the previous longest stretch that ended in April 1970. Taking into account the size of the labor force, claims today compared to the late 1960s and early 1970s are much lower…The consistently low claims levels point to labor market health because they mean relatively few Americans are losing their jobs and applying for benefits to tide them over until they can find new employment. After several years of consistent job growth, firms are reluctant to let employees go in a tightening labor market in which many available workers are quickly snapped up.

Wow.

Further good news:

Trump’s speech came amid surging optimism among American manufacturers thanks to the after-effects of the GOP’s recently-implemented tax reform law. More than 93% of manufacturers have a positive outlook on their company’s prospects in the U.S. economy – the second-highest level ever recorded by the National Association of Manufacturers –  its most recent quarterly survey revealed. Meanwhile, optimism among small manufacturers was at its highest level ever recorded throughout the survey’s 20 year history; 94.5% of companies reported that they were positive about their future. Wage growth among those manufacturers surveyed also rose at the fastest pace in 17 years…The survey showed that manufacturers expected full-time employment to increase by 2.9% on average over the next year, an all-time high by the survey’s standards. Companies also said capital investments are likely to rise by 3.9% over the next 12 months, while inventories are expected to rise by 1.7%.

The two main causes for the economic boom are cutting the regulations that make it difficult for businesses to grow and changing the tax codes so that Americans get to keep more of what they earn. Small business is one of the main engines of job growth in America, and changing the way small businesses pay taxes has a very positive impact on job growth. One other factor in the economic boom is the move toward American energy independence. Low energy costs and low taxes are two things that attract foreign businesses. Because America now has both of these assets, we are more attractive as a place for foreign business to relocate. We are more competitive in the global marketplace because of the policies of President Trump. That is a really good thing.

Why Did The Economy Turn Around In Less Than A Year?

On Wednesday, The Observer posted an article titled, “How Trump Got the Economy Booming in Less Than a Year.” That’s a question we need to answer if we are going to continue the boom.

The article reports some of the economic successes:

Early into his administration, Trump’s policies are already restoring growth. Real GDP grew 3.1 percent in the last quarter, up more than 50 percent from the average for the eight years that Obama was president.

In Trump’s first six months in office, more than a million new jobs were created, driving unemployment down to a 16-year low. The stock market set 34 new record highs, with headlines just last week screaming “Dow Races Through 23,000.”

The Conference Board’s Consumer Confidence Index rose to nearly a 16-year high, as did Bloomberg’s Consumer Comfort Index, both contributing to soaring retail sales. The National Association of Manufacturers Outlook Survey rocketed to a record 91.4 percent, the highest two quarter average for manufacturing optimism in the survey’s 20-year history. The Institute for Supply Management reported it’s barometer of manufacturing rose to 57.8, with over 50 indicating expansion of the manufacturing sector.

So how did this happen. Part of the reason for the growth is the promise of pro-growth tax reform based on the Reagan model of lower marginal tax rates. But there is another reason–based on actions, not promises–deregulation.

The article explains:

Trump has already made a lot of progress in removing Obama’s boot on the neck of American energy producers. That is why U.S. shale oil production has already soared to record levels since Trump entered office.

America today has the resources to lead the world as the top producer worldwide of oil, natural gas and coal. Removing America from the Paris Climate Accord, the start of the demise of Obama’s so-called “Clean Power Plan,” and Trump’s ongoing dismantling of the anti-American energy regulation of Obama’s EPA has already liberated America’s energy producers to assume these world leading roles.

Any economy with the world’s number one oil producing industry, number one natural gas producing industry, and number one coal producing industry is going to be leading the world with booming economic growth. And not just in energy but in manufacturing too. Because manufacturing is an energy intensive activity.

The article concludes:

The House and Senate have now passed budgets providing for many of the spending reductions proposed in Trump’s budget. Contrary to outdated Keynesian economics, government spending detracts from rather than adds to the economy, draining resources from the productive private sector, which is why Obama’s “stimulus” never worked.

In the 2010 and 2014 elections, voters decisively expressed what they think of the Keynesian doctrine that increased deficits and government debt contribute to economic recovery and restored growth. Voters first obliterated the House Democrat majority in 2010 and then took away the Senate Democrat majority in 2014.

Wait until America gains the reality of pro-growth tax reform. When it further restores booming recovery, voters will feel vindicated in their judgements and continue their support for the economic policies of the Trump administration.

I am not convinced that all of the voters will be smart enough to realize what has happened to the economy this year. Unfortunately, we have a bloc of voters who will be more concerned with whether or not the government will continue to pay them not to work. Part of the challenge in growing America’s economy is restoring America’s work ethic. That is part of the foundation of the change that needs to come.

Watch This Space

I firmly believe that at some time in the future, Senator John Thune will run for President. I’m not saying I would vote for him (or that I would not) and I am not commenting on the candidate he would be, I’m just saying that I believe that he will run someday. Just for the record, I also believe that if I were a Hollywood casting agent, I would cast him for the part. I just think there is something about him that looks presidential. He is now in the process of doing something that desperately needs to be done.

The Washington Examiner is reporting today that Senator Thune is going to fight back on the Obama Administration’s limits they are planning to place on ground-level ozone.

The article reports:

The South Dakota Republican’s bill would prevent the Environmental Protection Agency from imposing a more stringent standard until 85 percent of the more than 200 counties that have yet to comply with the current regulation do so. Sen. Joe Manchin, D-W.Va., is lined up to co-sponsor the bill, said Thune spokeswoman Rachel Millard.

The move comes as the comment period for the proposed EPA rule closes Tuesday. The House Science, Space and Technology Committee will hold a hearing on the subject Tuesday.

The EPA in November floated lowering the tolerable limit for ozone, or smog, to between 65 and 70 parts per billion, down from the level of 75 ppb set under former President George W. Bush in 2008. The agency also is taking comment on whether to set the standard at 60 ppb, though it wasn’t part of the official proposal.

I need to make it very clear that I am not in favor of pollution. What I am in favor of is fairness and practicality. It makes total sense to wait for the majority of our worldwide neighbors to comply with the current regulations before we make ours tougher. We are not a major part of the problem, and until our neighbors also take steps to cut their pollution, our efforts will not actually amount to much.

The article reports:

Industry groups and Republicans contend the updated standard would be one of the most expensive ever. They say it would throw dozens more counties into “non-attainment” zones that would restrict permitting for expanding or adding industrial emitters such as factories, refineries and other manufacturing facilities.

A National Association of Manufacturers-commissioned study by NERA Economic Consulting put the price tag for a 60 ppb level at $140 billion annually from 2017 through 2040. The study did not weigh potential benefits.

We need balance. We also need everyone to participate. Right now the move by the Obama Administration is overkill. Senator Thune is right to fight it.

The Fight To Open The Boeing Plant In South Carolina

My photos that I took at today's First Flight ...

Image via Wikipedia

The Hill reported today that the House of Representatives has passed a bill to limit the power of the National Labor Relations Board (NLRB) to dictate to a American company where it can expand its manufacturing.

The article reports:

The House approved H.R. 2587 in a 238-186 vote in which eight Democrats joined Republicans in supporting the bill and seven Republicans voted against it.

The bill is a response to the NLRB’s decision to sue Boeing after it opened a manufacturing plant for its new 787 Dreamliner jet in South Carolina. The NLRB is charging that the plane manufacturer picked South Carolina for new production in order to retaliate against strikes by its unionized workers in Washington state. South Carolina is a right-to-work state that generally bans union membership.

It is ironic that it would have been less complicated for Boeing to move its plant out of the country. That kind of government interference costs American jobs.

It is understood that the bill has little chance of passing in the Senate, but Republicans want a public vote in the Senate on the issue.

The article further reports:

House Minority Whip Steny Hoyer (D-Md.) said the bill would put real limits on the right of workers to bargain collectively. He said the bill would allow companies to say to workers, “Yeah, you have the right to bargain collectively, but if we don’t like what you’re doing, we’re taking a hike.”

Trade associations have lent their significant lobbying weight in support of the bill. Both the National Association of Manufacturers and the U.S. Chamber of Commerce told lawmakers that they would score votes on the bill.

Conservative activist groups, such as Americans for Prosperity and the Club for Growth, also have pushed for passage of the bill. 

Unions are in opposition, saying the legislation will gut worker protections and undermine the NLRB’s legal authority. 

I don’t know when the NLRB was given the power to tell companies where in the United States they could do business, but I do believe that it is time to take that power away. If corporations cannot meet union demands and still make a profit, they should be free to relocate where unions are not an issue. That used to happen in this country–one of the reasons the textile industry moved out of New England to the southeastern states in the 1950’s was that the southern textile plants were cheaper to operate because they were not unionized. When did companies lose that freedom?

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