Something potentially spectacular appears to be underway with the U.S. economy.
The Dow Jones Industrial Average, the S&P 500, and the Nasdaq all closed at record highs today in what many are now calling a major “Trump Bump” while some economists indicate the Trump Economy might even rival that of the economic boom that took place during the Reagan years when profits and Middle Class incomes soared across the nation.
Larry Light of Forbes had this to say regarding that very subject:
Why Donald Trump’s Market Rally Echoes Ronald Reagan’s
“…Reagan decided to focus on economic issues first and foremost. In February 1981, he sent to Congress what some political scientists called some of the most sweeping revisions of budget and tax policy ever attempted. The cornerstones of his plan were an across-the-board tax cut and an effort to reduce the size and growth of the federal government.”
Trump’s Make America Great Again economic proposals of cutting taxes, reducing non-entitlement and non-military spending (the “Penny Plan”) and increasing military and infrastructure spending are similar to what Reagan proposed but substantially larger.” Full article: HERE
Below is the end of trading graphic for today. Anyone attempting to argue the “Trump Bump” isn’t happening, and isn’t significant, are simply denying reality out of political spite. Donald Trump’s promise of lower taxes and fewer regulations, along with significant infrastructure and military spending has the American economic machine for the first time in a very long time, waking from its too-long slumber.
And for those silly liberal leftists who might once again try to dismiss Reagan (and therefore Trump) without actually knowing history, here is a brief rundown of those facts via Forbes:
“…Real per-capita disposable income increased by 18% from 1982 to 1989, meaning the American standard of living increased by almost 20% in just seven years. The poverty rate declined every year from 1984 to 1989, dropping by one-sixth from its peak. The stock market more than tripled in value from 1980 to 1990, a larger increase than in any previous decade.”
Now juxtapose the above with the following 2016 headline regarding the Obama economy – specifically how disastrous it has been for the Middle Class:
Average Family Today Has Less Income Than When Obama Took Office
And when you then combine the above with the falling labor force participation rate, you have a recipe for economic disaster:
Fewer jobs, less money for Middle Class families, higher debt, and more and more people simply giving up trying to make it (which is why the unemployment rate has fallen – once people stop looking for work, they are no longer counted as unemployed!)
Enter Donald Trump, talking language not heard since Ronald Reagan – the language of fewer regulations, lower taxes, a stronger military, and the determination to help ALL Americans regardless of race, gender, or political affiliation.
The challenges facing the Trump administration are enormous. The U.S. economy has been propped up for far too long on borrowed money and a dishonest media unwilling to share the details of just how precarious the country’s economic future has become. The student loan debt bomb alone could be enough to send us into another recession, and that is but one of many potential economic firebombs Barack Obama is leaving behind for President-Elect Trump.