Echoing Jimmy Carters’ dismal stagflation (the miserable national condition of stagnant economic growth and high inflation), then President Obama warned the nation just a few years ago of the “new normal.” The new normal was a perpetual economic malaise where business would learn to do more with less such that economic growth would remain sluggish and jobs would not return. A sullen Obama indeed cautioned Americans that many of the 8 million jobs lost would never return. Americans would just have to adjust to a bleak future.
But Donald Trump burst into the White House and he was having none of that resignation to losing. Obama led the hackneyed liberal line that America’s best days were behind us, but he never expected Trump to win the presidency and dismantle his lackluster legacy. Please don’t think Obama failed; he achieved exactly the backsliding economy the progressive movement covets. Democrats were thrilled with an economically stumbling America because that supported their claim we could only survive with globalization where the US would become more intertwined and eventually subordinate to international authorities.
Obama presided over an about 2% average GDP for his entire tenure. Since it takes about 3% average GDP growth to keep up with population growth, the available wealth to Americans was shrinking per capita. Again, lethargic growth neatly fit the Democrat agenda. Democrats incessantly clamored for bigger government because Americans could not make it on their own anymore. They needed more welfare assistance, free education, and free healthcare; and by the way Democrats need Americans to be dependent on government.
Trump trashed that doom and gloom scenario; the Trump economy is roaring. Last quarter GDP growth was a solid 4.1%, but that is only one quarter. But Trump is already trouncing Obama’s average. Since Trump took office, average GDP growth is 2.9%, but throw out the first quarter he shared with Obama and average GDP growth is an impressive 3.2% a mere 18 months into his term. JP Morgan CEO, Jamie Dimon, credits Trump’s tax cuts and deregulation with substantially accelerating the economy. Democrats mutter Trump inherited the good economy from Obama, but Obama never attained this sustained growth in 8 years.
Unemployment numbers have been sketchy the past decade; the latest unemployment is a healthy 3.9%, but Obama also had low unemployment numbers. However, Obama achieved those numbers by driving Americans out of the work force; he had the lowest job participation rates in a couple generations. Whereas Trump has already achieved the greatest job participation in history by enticing Americans back into the workforce. Trump has lured companies back to America and jump started American manufacturing that Obama had written off. Under Trump, the American economy has already created over 3 million new jobs. With minorities again finding jobs, minority unemployment is at record lows.
Trump’s tax cuts put more money in workers’ pockets, but wage growth has been unimpressive at best and stagnant at worst for a decade now. Wage growth is currently modest, but trending up. However, the factors for strong wage growth are shaping up. The current robust economy and compelling job growth are creating a shortage of workers. Companies are desperate for good employees, so a tightening job market creates pressure for rising wages.
Overall, Americans are better off, more generous, and even happier. 2017 was a record for charitable giving. The Consumer Confidence Index is steadily inching higher and after years of deep seated pessimism, more and more Americans are thinking the country is on the right track. With job opportunities sprouting everywhere, Americans can start thinking about building their futures themselves again. The depressing notion that one needs the government to survive is waning. Americans can again see the constitutionally guaranteed right to the pursuit of happiness is coming back.
“For I know the plans I have for you," declares the LORD, "plans to prosper you and not to harm you, plans to give you hope and a future.” Jeremiah 29:11
