The Democrat Congress that takes office in January will probably end the Trump policies that have resulted in the economic growth we saw in the third quarter and are seeing now. Ending the tariffs (a Democrat priority) will limit the supply of money being invested in America and will also slow the return of manufacturing to America. Green energy policies will increase the cost of fuel. Over-regulation will slow down business growth. Ending the tax cuts in the Big Beautiful Bill will slow economic growth. Increasing taxes on businesses will also slow economic growth. Hopefully, President Trump can veto all of these moves. Meanwhile, the Trump economy is doing very well.
Meanwhile, on Friday, CNBC reported the following:
- Nonfarm payrolls increased by 165,000 in October, well above the Wall Street forecast for 59,000, while the unemployment rate edged lower to 4.1%.
- Worker pay rose by 0.4% for a 3.1% annual increase.
- Job gains came in professional and business services, healthcare and manufacturing.
The article notes:
Payroll gains also came in better than forecast. Average hourly earnings increased 0.4% on the month and 3.1% annually, compared with respective estimates for 0.3% and 2.9%. The average workweek was unchanged at 34.4 hours.
“Today’s jobs report is a strong rebuttal to fears that the economy is heading into a meaningful slowdown,” said Seema Shah, chief global strategist at Principal Asset Management. “Payrolls growth surprised firmly to the upside, unemployment fell back to 4.1%, and job creation remains broad-based, pointing to an economy that is still absorbing labor comfortably rather than one beginning to buckle under tighter financial conditions.”
The breadth of job growth also was strong, contrary to a trend in which healthcare had accounted for the bulk of gains.
Professional and business services saw an increase of 70,000 to lead all sectors, while healthcare was next at 42,000. Other areas seeing notable growth included transportation and warehousing (25,000) and manufacturing (19,000).
The article noted:
The share of workers either looking for a job or already working as a share of the workforce, known as the labor force participation rate, edged higher to 61.9%. The labor force had been shrinking, the result of demographic changes and immigration reductions, but expanded by 421,000 in October.
We are moving in the right direction. Hopefully, the Democrat Congress will not mess this up.