So now we know why Nancy Pelosi and Chuck Schumer looked as if they were sucking on lemons during President Trump’s State of the Union address. They wanted him to thank Obama for all the good economic news he was touting.
That’s why members of the Congressional (Democrat) Black Caucus could not bring themselves to cheer when Trump announced that the black unemployment rate was now the lowest in the history of our nation.
Most forget that the financial crisis that occurred from the housing bubble in 2008 was ended before Obama took office. The recession that followed was made worse by his pathetic attempt to micromanage the economy. This led to the nation’s weakest economic recovery in modern history. And let us not forget the $800 billion dollars Obama fleeced out of we the taxpayers for those shovel-ready jobs. I think it is safe to say that if that $800 billion had been spend as advertised, we would not have an infrastructure problem now. In fact, many of our roads and bridges would be paved with gold.
Yes, it’s true. Most long-term economic trends were improving when Trump took office, but it had been a long, slow slog through this dreaded L-shaped recovery that left American wages flat. While the economy was limping along, the average worker was still mired in recession.
This was completely predictable.
Let’s say that you are a corporate executive trying to decide where to locate or relocate your headquarters. Should I put my business in a country with the highest corporate tax rate on the planet? Should I put my business in a country that just kicked the bottom rungs out of the economic ladder by raising the minimum wage, making it more expensive to train new workers? Should I put my business in a country that is paying people more not to work, thereby making it harder to find workers in the first place? Should I put my business in a country where I likely will be faced with more and more crippling regulations? Should I put my business in a country that will take years to get through the red tape necessary to build a plant and even longer to deduct my expenses? Should I put my company in a country where the cost of energy is high and likely to get higher with a war on oil, coal and even natural gas?
Sure, why not.
In your liberal dreams!
While Congressional Democrats want to thank Obama, anyone with an once of common sense is saying, “No thanks and good riddance!”
Meanwhile, American workers are just beginning to reap the benefits of the sound economic policy of President Trump. Wages in January were a full 2.9 percent higher than they were a year ago when Trump took office. More than two and a half million workers have already received bonuses or salary increases or both due to the corporate tax cut that passed without a single Democrat vote.
Earth to Nancy Pelosi: Those aren’t crumbs!
Let us not forget that by the end of Obama’s second term, the economy was decelerating with the annual growth rate falling to 1.8 percent. Had those policies continued, many economists were fearful of another recession. Now it is roaring back. The Atlanta Fed has estimated first quarter GDP to be 5.4 percent. While that may be a bit high, it is not unreasonable to expect something in the four percent range.
And why not? The upturn in business confidence that accompanied Trump’s election, led to increased business investment even before the tax cut. Spending on capital goods accelerated sharply over the first three quarters of last year, growing at an annualized rate of 6.2 percent. Furthermore, the investment in new plants, equipment and factory upgrades always leads to economic growth and job creation.
Job creation means a tightening labor market which leads to higher wages. Higher wages leads to consumer confidence which leads to more consumer spending, which leads to higher economic growth.
Finally, we may begin to see the kind of economic growth that should have followed the last recession but didn’t because of Obama’s crippling policies.
It won’t be long before those long faces of the Democrats we witnessed at the State of the Union will become longer still as workers begin to see the effects of the Trump tax cut reflected in their take-home pay.
Then Americans of all political stripes finally will begin to give the credit to the man who really deserves it. Thank you President Trump!