This is great news for America, bad news for everyone who bought Obama’s ‘new normal’ line about the low-growth economy.
The great test of a political theory is pretty simple. ‘Does it work’.
Let’s compare Obama’s financial legacy to Trump’s.
Obama, who made big promises, and ran on ‘hope and change’ never could deliver on that economic rebound.
It was called the Obama Recovery. But Investor’s Weekly, in December 2016 — went on record to explain why there was no such thing. One of the many reasons from the article:
“Conventional wisdom — as reported in many major newspapers and media — tells us the U.S. economy is ‘recovering,’ ” wrote Gallup Chairman Jim Clifton in a surprisingly blunt foreword to the study. “Well-meaning economists, academics and government officials use the term ‘recovery’ when discussing the economy, implying that growth is getting stronger. The study finds there is no recovery. Since 2007, U.S. GDP per capita has been 1%.”
It’s even worse when looking at a trend line. From a range of about 2.6% to as high as nearly 3.5% a year during the late 1960s, per capita GDP has steadily declined over time. This year, the report shows, per capita GDP will be a pathetic 0.5%. Per capita GDP is important, since it’s a common measure of living standards around the world. When it’s not growing, neither is your standard of living.
Source: Investor’s Daily
How does that compare with the economy under Trump so far?
Trump promised he’d see big GDP growth numbers. Obama laughed and asked about his ‘magic wand’.
Less than one month before the election, CNN money ‘experts’ ran this story:
No way, CNN?
Donald Trump is ‘dreaming’, is he?
Every month it seems we’re reporting on a new ‘good news’ announcement.
It might be a jobs number. Or record employment for this or that sub-sector of the economy. Maybe women, or a racial minority doing far better than expected.
Sometimes it’s a company starting a new project. Or employees getting a fat bonus.
It’s good news month after month after month.
To quote an old Clinton advisor’s infamous statement ‘it’s the economy stupid’.
Or you could say it another way.
GOP: the party of GDP.
When you slash regulation and lower taxes, the US economy leaps like a lion freed of its shackles.
Here’s Rush Limbaugh comparing how both economies have been reported:
“Second-Quarter GDP Jumps 4.1% for Best Pace in Nearly Four Years.” When I saw that, I said, “Four years? The Obama GDP was never over 3%.” What is this last four years? And they claim that the third quarter or second quarter of 2014 saw a GDP of almost 5%. I said, “I don’t remember that.”
So I got busy. I went out there and I started looking this up, and sure enough, if you go to the Bureau of Economic Analysis, which is an arm of the Commerce Department, you’ll find that right there, it’s either Q2 or Q3, second quarter, third quarter of 2014, there’s a GDP of almost 4%. The next quarter is barely over one and a half percent. What’s this? I don’t remember this.
I don’t remember that figurine being promoted and bandied about and heralded. And I still can’t find what it is that caused that. The closest I can get to it is that it was right in the middle of quantitative easing where we were printing money left and right and giving it to the stock market for the purchase of equities to keep the illusion that the stock market was going gangbusters even though Main Street wasn’t.
And then I remembered that there was a time Obama redefined the calculation of gross domestic product to include something as nebulous as intellectual property. No other capitalist or western democratic nation includes intellectual property in the calculation of GDP. And then I remembered — and all of this is still kind of fuzzy — then I remembered that the memory of that quarter was starting to slowly come back as I looked into this. And I remembered that most of it — and this wasn’t reported — most of it had to do with the massive growth of government.
I just can’t remember the specific areas of government, but that massive GDP growth also coincided with an increase in percentage of government spending as a percentage of GDP. The Obama administration did something in the quarter before that with federal spending and quantitative easing, and I just, given enough time, I’ll find it.
But in truth, folks, we haven’t had genuine 4% gross domestic product for economic activity, we haven’t had a legitimate one like this in far longer than four years. I mean, it’s not even close. The Obama administration, on average, was under 2%. 1.8% was the average GDP all the eight years of Obama, even if you factor in that one quarter that was like at 4.8%. This is real. Now, I hear what some of you saying, “Well, Rush, are you saying that that quarter in 2014 wasn’t real?”
No, it was real, but the way they got it was outside the U.S. private sector economy. It didn’t result from economic activity within the private sector. This does. My friends, it is crucially important that people understand why this happened, because this is a direct response or a direct result of the implementation of policies that had not been implemented in this country in at least eight years. And that is why this economy is growing by leaps and bounds.
Now, the experts are saying, “This is unsustainable. This was a one-off because of the sale of soybeans.” And if you doubt that, grab audio sound bite number 6. I just want you to hear this. We put together a montage of how desperate the Drive-Bys are not to credit Trump for this.
STEVE LIESMAN: Soybeans, the magic bean has moved GDP.
JIM PETHOKOUKIS: How much of this number was going to be sort of soybeans.
ALIX STEEL: Getting those soybeans out there before any kind of tariffs hit.
DAGEN MCDOWELL: Buying by overseas of soybeans ahead of these retaliatory tariffs.
CATHERINE RAMPELL: Farmers that grow soybeans had a huge surge in exports and we’re going to see that reverse.
CHRISTINE ROMANS: Soybean exports, stockpiling ahead of what many feared would be a trade war.
Source: Rush Limbaugh
They simply cannot bear saying anything that would put Trump in a positive light.
They won’t even say anything nice about Melania.
Melania! How does any honest person have an ax to grind with her?
The “resist” crowd loathes her, but Patriots love her.
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