- Feb 12, 2007
- 59,384
- 24,018
- 2,290
Many Americans were not satisfied with the annual average GDP of 2.1% during the Obama years, nor with the annual average rate of inflation of 1.4%.
Many were also not happy with the narrowing debt to GDP ration that was being experienced during the last several Obama years.
So, enter the angry, white, male Trump, Hell bent on increasing GDP at all costs.
Annualized GDP for 2017 was 2.3% & so far for 2018 GDP average is 3.3%.
OK; so far Trump's economy has increased GDP on average by 0.7% over the Obama economy. This is not a terrible feat but by no means are the Trump economy GDP numbers anything to 'write home' about.
Let's throw in other factors when looking at the larger Trump economic & GDP picture.
Inflation, and Debt are two huge factors that will weigh heavily on the Trump GDP big picture.
Combined inflation rate so far for 2017 & 2018 is 4.0% and that does NOT include very expensive factors such as FOOD & ENERGY costs.
US federal debt set a new six year high record in 2018 as a result of the Trump tax cuts that offer tax relief for the wealthiest 0.01% of individuals & for corporations.
So, even while the wealthiest individuals & corporations enjoy record tax breaks the US deficit is increasing at record pace.
Add up the numbers
So, with an increase of GDP by about ~1% we also gain massive debt, all while we should be paying down debt.
What else is going on?
Real wages are NOT increasing at any substantial level, particularly when accounting for inflation; real wages are actually DECREASING.
Consumer spending aka the largest driving force of increasing GDP is ALSO increasing private debt aka consumer debt is driving the increase in GDP.
THIS IS INSANITY!!!!!!!
Housing starts & sales are both decreasing.
Oil is about to go into free fall.
The corporations that received all of those tax breaks are NOT spreading the economic love to employees.
The equity markets are IMO set for an even further decline of 10% to 25%, or even worse.
America is about to experience some REAL PAIN economically; it's just around the corner.
Thanks Trump for the coming DEPRESSION.
Was it all worth a temporary GDP gain of ~0.7%?
Try reading up on ZIRP and the inflationary impact it had on Assets.
