President Donald Trump keeps bragging about how the Trump economy is booming under is awesome leadership. Is it? It is actually declining, Or in Trump talk, really really declining. Here is a guide to Trumps economy.
We need to look at something rare in Trump World – facts.
The Obama Effect
Th stock market is soaring. Trump says it’s all because of him. It didn’t start going up a year ago. It has been rising since we have been coming off a boosted recovery.
The stock market during Trump’s first year has been developing a bubble effect. That is not a healthy sign.
While the stock market was rising Trump took credit for it. Even on the day, while the Dow Jones was dropping, Trump still bragged about how his great leadership was the reason the Dow was breaking records.
Now that there is panic in the stock market, Trump is quiet. He will never “own it” when it goes down.
The soaring stock market is a momentum effect of a soar that was on going before Trump became president.
Trump keeps repeating that 2 million jobs have been created since he became president. That is true, but not very great if we look back at the trend over the last few years for a perspective:
- 2014: 3.0 million
- 2015: 2.7 million
- 2016: 2.2 million
- 2017: 2.0 million
Job creation has been decreasing year-on-year over the last few years. That is because of the aforementioned recovery. there are cycles up and down. We have been on a down over the last few years. That’s not Trump’s fault. Similarly it’s not Trump’s great leadership that created those 2.0 million jobs last year; it’s in spite of Trump.
The unemployment rate is at a record low of 4.1%. True. But Trump was consistently telling us during his election campaign that the unemployment figures were unreliable. Trump said on a number of occasions that the real unemployment was 20% to 35%.
They were phony then, but now by the Trump miracle they are accurate. And it is all due to The Great Leader.
The big problem Trump avoids is wage growth which is way too low at 2.5%.
The true figures are given by the Bureau of Economic Analysis. They say the United States GDP for 2017, Trump’s first year in office, was 2.3%.
Trump says it’s 3.0%. That is a lie.
Trump’s GDP in perspective is about average for the last 20 years, which is 2.2%
That Places 2017 at 11th place over tese last 20 years.
Tax Cut Bonuses
Trump brags that 3.1 million United States workers have received bonuses or pay increases as a result of the tax cuts.
Comcast gave $1000 bonuses to 100,000 employees. But they fired 500 managers.
At&T gave $1000 bonuses to 200,0000 employees, but laid off 4,000 staff.
Walmart did give workers up to $1000 bonuses. But that didn’t benefit the 7,999 worker laid off. So Walmart resulted in a net loss for workers.
The big question here is if the companies will pass teir tax cut benefits on to employees or to shareholders. This is something to watch out for.