President Donald Trump has been very positive about his administration’s impact on the US economy. He’s called it “an economic turnaround of historic proportions” or even “an economic miracle.”
While some quarters would argue that those comments are leaning into hyperbole, what’s undeniable is that the economy under Trump is indeed doing very well.
The unemployment rate currently stands at 3.9 percent. The last time unemployment was at this number was in the year 2000, and this stood at a high of 10 percent in October of 2009, less than a decade ago.
Now, when Trump took office, the unemployment had already gone down to 4.7 percent. This positive effect had already been started before Trump’s time, but the continuation of this trend cannot be seen as anything but positive.
The economy has also seen the addition of more than 3 million jobs since the start of Trump’s presidency. This is during a time when some economists had been describing the economy as “full employment”, which means even small instances of growth would be an accomplishment.
Under Trump’s stewardship, the country’s GDP has grown to 4.2 percent in the second quarter of the year. This is not unprecedented, with the previous administration having similar stretches as well, but this is the best number seen in about four years.
More importantly, the GDP growth easily clears the predictions for this year, which was estimated at just 2.3 percent.
Aside from the jobs and GDP, business investment and confidence are on the rise as well.
What exactly has Trump done to affect the economy? Well, his administration has boosted government spending, passed significant tax cuts and softened regulations.
His Tax Cuts and Jobs Act, a $1.5 trillion plan, gave temporary tax relief to millions of individuals as well as lowered the exceptionally high 35 percent corporate tax rate down to 21 percent. His moves to deregulate, particularly in banking and environmental protections, were meant to create more jobs with lower barriers in industries.
While it’s arguable if his policies are solely responsible for all of the positives the economy is currently enjoying. What’s clear is that he is currently overseeing the continuation of growth and is leading a booming economy.
The true test for them now is to prove this growth is not simply a “sugar high” as how some critics predict. Showing that these policies will lead to long-term, sustainable growth and stability will cement Trump’s economic record and prove his claims are more than just bluster.
SOURCES:
“The ‘Trump economy’ vs. the ‘Obama economy.’” The Washington Post, 18 September 2018, Web. https://www.washingtonpost.com/politics/2018/09/18/trump-economy-versus-obama-economy/?utm_term=.76a1ef6762fc
“The truth about the Trump economy.” Vox, 24 August 2018, Web.
https://www.vox.com/policy-and-politics/2018/8/24/17759940/donald-trump-economy-jobs-growth-obama
“Trump has set economic growth on fire. Here is how he did it.” CNBC, 7 September 2018, Web.
https://www.cnbc.com/2018/09/07/how-trump-has-set-economic-growth-on-fire.html
“The one thing Trump can’t sell: A booming economy.” Politico, 13 September 2018, Web.
https://www.politico.com/story/2018/09/13/trump-booming-economy-midterms-782465