Last week, the Commerce Department announced the U.S. economy grew at 3 percent for the second quarter in a row!
If this initial estimate holds up, our economy will compete for its third straight quarter of 3-plus percent growth which, if achieved, would be the first time we landed this economic “hat-trick” since before the 2008 financial crisis.
The second quarter’s economic expansion was made more impressive by the fact that the U.S. suffered two major hurricanes during this time span. These hurricanes damaged powerful centers of economic activity, including Texas and Florida, yet the ‘Trump Boom’ still proved resilient.
Surely now it is getting embarrassing for liberals who claimed Trump’s election would be apocalyptic for our economy — much like preacher Harold Camping after his predicted day of reckoning passed.
New York Times columnist Paul Krugman had proclaimed that Trump’s victory meant “we are very probably looking at a global recession, with no end in sight. I suppose we could get lucky somehow. But on economics, as on everything else, a terrible thing has just happened.”
Newsweek and Vanity Fair writer Kurt Eichenwald also thought that Trump would take the economy underwater and leave businesses with more red ink. Eichenwald proclaimed on Twitter, “In preparation for a completely unpredictable Trump presidency, I sold all stocks my kids’ education accounts today. I urge u to do same.” What a time to exit the market!
The Washington Post editorial board warned us that “A President Trump could destroy the world economy” and “the disruption to market confidence could breed economic damage in excess of any transitory benefits” of some of Trump’s pro-growth policies.
And for my favorite of all, Michael Moore sounded the alarm against a Trump economy saying “if Trump is elected… people are going to bail” from the market.
Contrary to the liberal doomsayers, President Trump’s efforts to cut government red tape and lower tax rates will lead to an enormous boom to our economy — easily achieving the 3-percent growth left-wing academics have called impossible — so long as Congress can deliver on this agenda. Our uptick in consumer and business sentiment these past two quarters will be curtailed if the GOP is unable to deliver on the tax cuts that American households are counting on.
And lastly, the future of this “Trump Boom” will also be largely defined by the administration’s dollar policy. If Americans receive money in one pocket through tax cuts only to have money removed from another through inflation, our economic growth cocktail will be significantly watered down. Therefore, it is important that the administration maintains a stable dollar in order to give Americans the most ‘bang for our buck’ on tax cuts.
Unfortunately, the rumored front runner to replace Janet Yellen at the Federal Reserve is Jerome Powell, who doesn’t inspire tremendous confidence from sound money advocates due to his time at the Federal Reserve’s Board of Governors — where he regularly voted alongside Yellen.
Whether President Trump decides to appoint Powell, or a longtime champion of sound money like Stanford University Professor John Taylor, Trump should ensure that his monetary policy supports the tremendous economic growth he is set to unleash through his pro-American economic agenda. Economic growth is picking up — Congress must keep the ball rolling!
Photo credit: Gage Skidmore