What Has He Done?

The mainstream media delights in talking about Donald Trump. They bash him on a regular basis–they don’t like his tweets, they don’t like what he says at his rallies, they don’t like the judges he appoints, etc. But when was the last time you heard any of the media mention anything that President Trump has accomplished in his almost two years as President? It seems as if that might be a consideration in the mid-term elections.

Yesterday The Gateway Pundit posted a list of President Trump’s accomplishments.

I will attempt to summarize that list here:

The stock market on Wednesday, January 17th, 2018, said it all.  On that day the Dow broke 26,000 points for the first time in its history. As a result the Dow broke the record for the fastest 500, 1,000, 2,000, 3,000, 4,000, 5,000, 6,000 and 7,000 point increases between major milestones in the history of the Dow. All of these increases occurred since Donald Trump was elected President.

…President Trump however reached a GDP of 4.2% in the 2nd quarter of 2018 and 3.5% in the 3rd quarter.  With a GDP in the 4th quarter of around 3%, the GDP for the year will be greater than 3%.  Something the prior President Obama never did and said no longer could be done.

In regards to debt, President Obama increased the amount of US debt astronomically. By the time Obama left office he had doubled the US debt to $20 trillion and incurred as much debt as all previous Presidents combined. President Trump is slowing that trend.

…With his increasing GDP and slowing of debt increases, President Trump has managed to decrease the debt to GDP ratio in the 2 years since the 2016 election.

…President Trump is the ‘Jobs President’.  Yesterday, the Bureau of Labor Statistics reported that 250,000 new jobs were created in October.  In President Trump’s first two years since elected President, the US has gained over 4.3 million jobs.  (In President Obama’s first two years the US lost over (4.2) million jobs.)  More people are working in the US than ever before and unemployment is at 50 year lows landing at 3.7% last month.

…President Trump vowed to destroy ISIS. Despite President Obama saying that ISIS will be around for a generation, these murderers and terrorists in the Middle East were decimated over the President’s first year in office. Both Syria and Iraq declared victory over ISIS and due to President Trump’s resolve, less than 1,000 ISIS fighters remain.

…The President refused sending Pakistan security assistance in the millions due to the Pakistani’s harboring terrorists. He stopped an Obama last minute $221 million transfer to Palestine and cut aid to Palestinians in half. He showed that the US is unwilling to work with Muslim entities that support radical Islam.

…President Trump signed more than 90 executive actions in his first 100 days alone.  The White House.gov site lists 81 pages of Executive Actions in the two years since the President was elected into office.  The actions include –

* Dismantling Obama’s climate change initiatives.
* Travel bans for individuals from a select number of countries embroiled in terrorist atrocities.
* Enforcing regulatory reform.
* Protecting Law enforcement.
* Mandating for every new regulation to eliminate two.
* Defeating ISIS.
* Rebuilding the military.
* Building a border wall.
* Cutting funding for sanctuary cities.
* Approving Keystone and Dakota pipelines.
* Reducing regulations on manufacturers.
* Placing a hiring freeze on federal employees.
* Exiting the US from the TPP.

There is much more, but you get the picture. Please follow the link to the article to read the entire list. It is amazing that the mainstream  media has reported very little if any of this. If you wish to see these accomplishments continue, vote Republican on Tuesday. If you wish to go back to a low workforce participation rate, more regulations, and higher taxes, then vote Democrat.

About That Recovery

Yesterday The Wall Street Journal posted an article illustrating the timeline of the economic growth our country is currently experiencing. The article deals with the recent claims by former President Obama that he is responsible for the current economic growth and that the growth began under his leadership. In February 2018 The Washington Times reminded us that Obama Democrats told us that what looked like long-term stagnation under President Obama’s economic policies, with growth stuck at 2 percent on average for his whole eight years in office, was the New Normal that the American people were going to have to get used to, the best we could do now.

The Wall Street Journal reports:

Milton Friedman was the first economist to notice a pattern in American economic history: The deeper the recession, the stronger the recovery. The economy has to grow even faster than normal for a while to catch up to where it would have been without the recession. The fundamentals of America’s world-leading economy are so strong that the pattern held throughout the country’s history.

Until the past decade. The 2008-09 recession was so bad, the economy should have come roaring back with a booming recovery—even stronger than Reagan’s boom in the 1980s. But Mr. Obama carefully, studiously pursued the opposite of every pro-growth policy Reagan had followed. What he got was the worst recovery from a recession since the Great Depression.

Before Mr. Obama, in the 11 previous recessions since the Depression, the economy recovered all jobs lost during the recession an average of 27 months after the recession began. In Mr. Obama’s recovery, dating from the summer of 2009, the recession’s job losses were not recovered until after 76 months—more than six years.

The article concludes:

Obama apologists argued America could no longer grow any faster than Mr. Obama’s 2% real growth averaged over eight years. Slow growth was the “new normal.” The American Dream was over. Get used to it. Hillary Clinton promised to continue Mr. Obama’s economic policies. America’s blue-collar voters rose up.

The recovery took off on Election Day 2016, as the stock market communicated. Mr. Trump’s tax cuts and sweeping deregulation—especially regarding energy—fundamentally changed course from Mr. Obama. These policies have driven today’s boom, increasing annual growth to more than 3% within six months and now to over 4%.

Will Democrats ever figure out what policies create jobs, economic growth and rising wages? If not, they’ll wake up some Wednesday morning to find they have been routed in a fundamental realignment election, in which they have permanently lost the blue-collar vote—once the backbone of their party.

The truth is in the numbers. All of us need to be aware that what former Presidents say about today’s economic growth may not be true. Economic policies make a difference, and President Trump has illustrated that.

Some Perspective On The Debt

The 2-year spending bill has passed. The good news is that we will now be able to go two years without the threat of a government shutdown. The bad news is that in order to get the needed military spending and pass the bill, fiscal sanity went out the window. However, when you look at the bigger picture of where we are currently, things are actually getting better.

The Gateway Pundit posted an article today about the Trump Administration and debt increases.

The article included the following:

In spite of the fact that President Trump took over with nearly $20 trillion of debt and the related interest payments on the debt, and in spite of the Federal Reserve (FED) under Janet Yellen increasing interest rates by a full 1 percent since the 2016 election, President Donald Trump’s debt is one third and $1.2 trillion less than Obama’s.

The US Debt since President Trump was inaugurated on January 20th, 2016 through today has increased by only $547 billion. On inauguration day the debt was at $19.9 trillion and on February 7th, 2018 the debt stood at $20.5 trillion.

…Where President Trump increased the Debt to date by only 2.7% , Obama increased the debt by 16.2% or 13.5% more than President Trump.

President Obama inherited a US Debt amount of $10.6 trillion on his inauguration and increased it by more than $1.7 trillion by the end of his first year in office.

…CNBC reported in December 2015 that President Obama oversaw “seven years of the most accommodative monetary policy in U.S. history” (from the Fed). The Fed Funds rate was at zero for most of Obama’s time in office. Finally, in December 2015 the Fed announced its first increase in the Fed Funds rate during the Obama Presidency.

The only Fed Funds Rate increases since 2015 were after President Trump was elected President. The Fed increased the Fed Funds Rate on December 14, 2016, March 15th, 2017, June 14, 2017 and again on December 13, 2017. Four times the Fed has increased rates on President Trump after doing so only once on President Obama late in his 2nd term.

The article explains how the Fed Funds Rate impacts the economy:

Lower interest rates usually spur the economy by making corporate and consumer borrowing easier. Higher interest rates are intended to slow down the economy by making borrowing harder.

If the Federal Reserve was political and wanted to prevent Republican Presidents from successful economic growth and debt decreases, then the Fed would increase the Fed Funds rates during Republican Presidents’ terms while decreasing the Fed Funds rates under Democratic Presidents’ terms. This appears to be exactly what the Fed is doing and the market is reacting negatively this past week because of it..

One of the things to remember during the Trump Administration is that President Trump is truly swimming upstream. There are a lot of vested interests in Washington who feel that the success of President Trump would not be in their best interest. Among other things, shrinking the size of the bureaucracy would have a negative impact on real estate prices in the suburbs surrounding Washington–currently the wealthiest counties in the nation. President Trump is a serious threat to the deep state.

A Year Later

On Friday, Investor’s Business Daily posted an article detailing the impact of President Trump‘s economic policies. The fact that President Trump is a businessman rather than a politician has had an impact on his economic decisions and thus on the American economy. How has that worked out?

The article reports:

Stock market: The Dow Jones industrial average rose about 31% over the past year, “more than any other president since Franklin Roosevelt,” CNBC.com reminds us. Total stock market wealth added since Trump’s first inauguration: $5.5 trillion.

Jobs: Over the last year, 2.2 million jobs were added to the economy, as the unemployment rate fell from 4.8% to 4.1% currently. Minorities experienced their lowest unemployment rates ever in December 2017, after a year of solid gains. Unemployment claims, meanwhile, are at a 45-year low.

GDP: President Trump entered office amid what appeared to be a dangerously slowing economy, with just 1.2% growth in the first quarter of 2017. But growth immediately picked up, rising to 3.1% in the second quarter, 3.2% in the third quarter, and, based on recent data, 3% or higher in the final quarter of 2017 — making the longest stretch of 3%-plus GDP growth since 2005.

Tax cuts: Trump’s $1.5 trillion in tax cuts lowered the corporate marginal rate from 35% to 21%, and cut rates sharply for middle-class and lower-income Americans. The results are in: Less than three weeks after the tax bill became law, more than 164 companies — ranging from AT&T and Apple to Visa and Wal-Mart — have announced pay hikes and special bonuses for their workers. Apple stunned markets last week, announcing it would bring $245 billion back from overseas, hire about 20,000 new workers and hand out bonuses of around $2,500 for each of its employees due to tax cuts.

Confidence: Our IBD/TIPP Economic Optimism Index stands at 55.1, well above the 49.3 average over that measure’s lifetime, signaling continued confidence in the strength of the economy. The optimism index is close to its all-time high and has now been positive — above 50 — for 16 months. Meanwhile, a separate IBD/TIPP index for financial stress is at its lowest since we began measuring it in 2007.

Regulation: Trump fulfilled his promise to cut more rules than he enacted. Indeed, he eliminated 22 regulations for every regulation he added, cutting some $8.1 billion in costs. More important, he pulled out of the ruinous Paris Climate Deal, which the NERA economic consulting group estimated would cost the U.S. some $3 trillion in compliance costs over the lifetime of the deal.

I can’t help but wonder if those who are protesting President Trump have 401k accounts and if they have checked their balances lately. Are the people protesting invested in the American economy in any way? Do they have jobs? Are they looking for jobs? And last of all, are we again dealing with paid protesters?

A Picture Of The Obvious

Yesterday The Washington Examiner posted an article about the media’s coverage of President Trump as compared to previous Presidents.

The graph below is from the article:

Wow.

On November 23,  The National Review posted a list of some of President Trump’s accomplishments as of Thanksgiving:

The Dow Jones Industrial Average, NASDAQ, and S&P 500 all hit record highs on Tuesday. The Wilshire 5000 Index calculates that some $3.4 trillion in new wealth has been created since President Trump’s inauguration and $5.4 trillion since his election. Fueled by the reality of deregulation, expectations of lower taxes, and a new tone in Washington that applauds free enterprise rather than excoriate it, the economy is on fire. 

Atop the second quarter’s 3.1 percent increase in real GDP, and 3.0 in 3Q, the New York Federal Reserve Bank predicts that 4Q output will expand by 3.8 percent. This far outpaces the feeble average-annual GDP growth rate of 1.5 percent on President Obama’s watch. Meanwhile, the IMF expects global GDP to rise by 3.5 percent this year. So much for a Trump-inspired “global recession.”

Unemployment is at 4.1 percent, a 17-year low. New unemployment claims in September were at their most modest since 1974. Goldman Sachs on November 20 “lowered our unemployment rate forecast to 3.7 percent by end-2018 and 3.5 percent by end-2019.” According to the Wall Street powerhouse’s chief economist Jan Hatzius, “Such a scenario would take the U.S. labor market into territory almost never seen outside of a major wartime mobilization.”

American companies have been expanding operations here rather than shipping jobs overseas. Corning, for instance, announced a $500 million investment in new U.S. production, launching 1,000 positions. 

Foreign firms have been unveiling facilities and creating jobs in America. Insourcing is now a thing. Taiwan’s Foxconn will spend $10 billion on a new Wisconsin electronics plant with 3,000 new employees. During Trump’s recent visit to China, Beijing agreed to invest $84 billion in new energy projects in West Virginia.

Add to that the future impact of the tax cuts and the repeal of the ObamaCare mandate, and most Americans will be better off next year than they have been for a number of years. To paraphrase a recent campaign slogan, “Are you better off now than you were before President Trump took office?” Hopefully enough people will answer that question honestly before they vote in the mid-term elections.

At some point Americans who depend on the mainstream media for their news are going to look at the contrast between what they are being told and what they actually see. That may be the end of the mainstream media.

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.