By Phil Grant
It has been years since we have had a president who knows much economics. It has been decades since we have seen a president directly involved in doing so much, from so many different angles, so quickly to help our economy. Tax cuts for corporations and for individuals, significantly reduced business regulations, a positive attitude toward the power of and opportunities for business, tariffs that are fair for both our country and our trading partners, a focus on keeping energy prices low, recognition of the importance of keeping profit growth and wage growth aligned, motivating companies to come back to America, reducing the oversupply of labor from illegal immigration and cutting government waste are a few of the things Donald Trump has done to help the United States get out of the economic doldrums of the past.
As a result of this coordinated, multipronged attack on key factors influencing the economy we have seen gross domestic product (GDP) growth surge to nearly twice the rate of growth under Obama. Practically all segments — manufacturing, retailing, service and so on — are doing better. State-by-state GDP growth looks similar. This is attracting investment in America’s economy by both domestic and foreign enterprise. It is leading to fuller employment and higher wages. And it is being achieved without the billions of “stimulus” money Obama fritted away and which nearly doubled our federal debt.
Unemployment has reached historic lows. Overall it is down to approximately 3.8 percent. But that isn’t the full story. Female unemployment is down, black unemployment is down, Hispanic unemployment is down. Gay unemployment is down. All this is in addition to white male unemployment being down. Right now, there are actually more jobs in America available than there are people to fill them. Need it be said that blacks have improved their lot far more under Trump in one year than under Obama in eight years?
There are many other indicators of an improved economy. Instead of welfare skyrocketing as it did under Obama it is down under Trump. Food stamp users are way down, by the millions. Search time required to find a new job is way down. The stock market, inflation, interest rates, consumer confidence, international trade balances, the labor participation rate, employee benefits and housing sales are all showing exceptional performance.
Government revenues from taxes are particularly strong as GDP ramps up to cause more taxes to be collected even though the tax rates have been reduced. Many analysts would like to have seen even greater tax cuts because we are probably still too high on taxes to cause maximum revenue for the government. A higher tax rate reduction might well have wiped out this year’s federal deficit. But we are going to need more legislators on board to achieve this.
Do not believe the media and the Democrats when they tell you Trump doesn’t know what he is doing, or that Trump is incompetent, or that Trump doesn’t have the best interests of America at heart. In fact, Trump is very smart and is one of the most solid patriots you will ever find. He has a lifelong history that proves it.
Most of all, don’t pay much attention to Paul Krugman (the New York Times writer and former Nobel Prize winner), who said a Trump administration would be an immediate economic disaster and that tax cuts don’t have a positive impact on the economy. He has been proven wrong many times over the years. What he really means is that building an economy with free enterprise tools does not yield the socialistic economy he would like to see.
Phil Grant, Ph.D., Hon. DBA is professor emeritus at Husson University. He has written books and articles over the years on economics and management. He is a resident of Gouldsboro.