It has become wildly frustrating to sift through all the hysterical media analysis of Trump’s presidency in order to get to the true nature of Trump’s economy. If you’ve grown tired of the cliche apocalyptic vision of the mainstream broadcasters on cable television, know that you’re not the only one.
I will attempt to invoke a breath of fresh air into your current economic news feed. It’s no wonder they call economics the dismal science! Believe it or not, there are objective metrics sourced by credible market analysts which paint a much more positive picture of the many facets of our economy’s health. Some of these are the result of domestic policy aimed directly at the bedrock of the American economy—the entrepreneur—while others are geopolitical reflexes underpinned by President Trump’s infamous “America First” mantra. Let’s briefly examine these phenomena in order to balance the prevailing media orthodoxy.
Morale is High
Even though Donald Trump’s election shocked markets worldwide all the way back in November 2016, the markets seemed to have recovered very quickly; in fact, they seem to have steadily improved since the initiation of his presidency. Small business owners supported Donald Trump 2-to-1 over Hillary Clinton in the 2016 presidential election, and now about half of them think President Trump is doing a good job of representing their interests in the White House, according to a national study conducted by Toby Scammell.
Tax Cuts and More Tax Cuts
Let’s begin with the Tax Cuts And Jobs Act. It’s no doubt that this is a massive tax break for just about everyone. As Yaron Steinbuch of the New York Post reminds us, “The tax package—the largest such overhaul in decades—slashes the corporate rate from 35 percent to 21 percent and also temporarily reduces the tax burden for most individuals as well.” While there are limitations, the president’s tax cuts have been a boon to businesses all over the country and have resulted in significant increases in employment and wage growth. Although this tax plan will lead to a substantial increase in the national debt, and force interest rates upwards in a time of economic growth, it’s certainly refreshing for an administration to put business owners and individuals at the forefront of policy decisions. It will be an interesting test of consistency and integrity to observe the reactions of pop-economists like Paul Krugman who’ve swept the nation’s debt issue under the rug for the past eight years.
The Truth About Tariffs
Perhaps more importantly and of grander scale is the possibility of a trade war with the second largest economy in the world. Or is there? The convenient transition into pseudo-libertarianism on the issue of free trade by the mainstream media has erupted a national debate on tariffs and subsidies. The reality is this: China cannot engage in a disruptive trade war with the United States while our deficit remains intact. Trump, with empathetic vigor for the American working class, declared an unrepentant stance favoring American protectionism. His tariffs on Chinese goods and commodities are intended to initiate the rehabilitation of the industrial infrastructure of the nation. Some might fairly argue that this is a reactionary “strongman” play on the world stage; but many see it as an attempt to gain more control over the economy. Additionally, some tech and other goods are being banned by FAR rules, further disrupting trade with China.
There’s plenty of information and media stories to sift through, but just a moment of fair and unbiased research can provide a wealth of insight into the reality of Trump’s presidency and Trump’s economy. With every doomsday scenario, there is an equally viable plot of redemption. So don’t be so down in the dumps—there’s plenty of economic growth to look forward to!