America's booming economy is Trump’s 2020 tailwind
History shows America's booming economy could hand Trump a win in 2020
Every incumbent president since FDR who has avoided a recession in the lead-up to an election year was re-elected.
Why it matters: More Americans are saying they approve of President Trump's handling of the economy, even though they disapprove overall. 51% of people disapprove of Trump's job performance in a Wall Street Journal/NBC News poll out last week, but 51% approve of him on the economy. If he loses, it would be a big break with recent history.
The 2020 election is about 18 months away, and key metrics show the economy is surprising to the upside.
Details:
- The economy grew 2.3% during Trump's first full year in office, and it hit 2.9% in 2018 — slightly less than the 3% the White House promised, but still the fastest annual pace since 2015.
- Unemployment is at a 50-year low, and the stretch of job growth that began under Obama has continued for a record 103 months.
- By the Federal Reserve's own guidance, low interest rates will stay low for a while longer. (In fact, inflation is so tepid, traders are betting interest rates will be even lower in coming months.)
Terri, let me help you out a little on this, if you don't mind.
The economic growth we have seen is a large % on the consumer side as people feel better about their job situation, and their ability to move to another job if they so desire.
But, and a LARGE BUT, is that business has reinvested in themselves, especially manufacturing with new equipment. We see Ford, and Fiat/Chrysler, investing in plant expansions, and some in to entirely new plants. The auto industry is NOT the only ones.
The problem the Left has painted is what is called a lull. A lull is when industry PURCHASES new equipment, and the time it takes to put said equipment on line, getting it to produce up to its maximization. People who have never worked in factories do not understand that you just do not buy the latest and greatest machinery, plug it in, and it all just starts spitting out widgets. The larger the factory, the longer it takes.
Everyone who wishes to be honest with themselves, and everyone else, has to realize that because of Obama policies, and because nobody knew who he was going to hammer next in industry, that our core industry's stopped investing. When Trump came along, they had a loooooooong way to catch up. This was part of the economic growth we have enjoyed in the last 3 years, as companys/corporations, began reinvesting in themselves.
But the outlay of that cash in new machinery, does not translate from delivery to instant production. In fact, most of the time, when a large entity invests in massive amounts of new machinery, it actually LOSES money for the 1st year as they bring it online, and fine tune it. The key is------------>to see the MASSIVE AMOUNTS of money invested in business as opposed to under Obama, on the belief that things were going to get better, much better; and trust me, there is a huge disparity between manufacturing business investment under the previous administration, and this one.
Let me tell you Terri how this works from a business perspective---------------> It is a businesses job to create the same amount of product, or more; from less inputs. When I say inputs, I mean---------->materials or labor. This allows our standard of living to RISE, as prices fall because of LESS inputs to produce the same product. The key that you are looking for is---------------------> as productivity rises, employment still INCREASES, as production...…..even with new machinery...……..has to be increased to keep up with demand.
That has been happening under Trump, even as much of the machinery has not yet been brought online, or up to its full potential. 2020 is going to be a BETTER year than 19, as far as profits and OUR exports, as our labor cost differential, is offset by our new machinery as it is fired up and tuned. But remember Terri, if our ingenuity made us the best and cheapest by far, woulda made no difference with the barriers our supposed friendly trading partners had in place. Trump is knocking those down like a strike on a bowling alley.
If he succeeds in these endeavors with the congress support, you are going to see massive growth. Why do you think on the USMCA, he demanded environmental protections? For the Lefts happiness? Well, politically partially, but the fact is------------------>our energy, our stability, our infrastructure, and our NEW MACHINERY will out perform almost everyone to those who want to invest, except our ENVIRO policy. Trump was a genius in this endeavor, as instead of cratering ours, insisted that anyone who wants to do business here bring theirs up to snuff, thus taking away the one MASSIVE economic hang up we had in the Americas!
In closing, let me say that yes, my post was a little wonky, but sometimes, when you get the drift of what is actually going a little better, it is easier to SMOKE A LIB, lololol.
Merry Christmas, and have a wonderful New Year!