Last Friday morning, President Trump announced really great news, stating, “My Fellow Americans, as we celebrate American Dream Week at the White House, we continue to see incredible results. This week, the Dow Jones Industrial average reached an all-time high. Never, ever has it been so high. In May, the unemployment rate hit a 16-year low, and last quarter, real GDP growth increased to 2.6 percent.”
He went on to remind Americans of just how bad the economy had gotten during the Obama administration, which allowed “other countries to drain our jobs and drain the wealth of the United States of America” and “taxed and regulated our own workers and industries” out of jobs, before stating that those days are over.
“My administration is working tirelessly on behalf of the American people. We have removed regulations and targeted unfair trade practices that are hurting Americans all over the world. We’re ending the war on coal and unleashing American energy. We are introducing a tax plan to grow our economy and create more jobs,” said President Trump, noting, “Factories and plants are coming back into Michigan and Ohio and Pennsylvania, and many other states. They are coming back, instead of leaving like they have been for decades.”
The Bureau of Labor Statistics then backed him up when it released the July jobs report, announcing on Friday that payroll employment has grown by 209,000 jobs in July, bringing the unemployment rate down slightly to 4.3 percent. This is essentially full-employment.
What this also means is that under President Trump, the unemployment rate is lower now than it was at any time under Presidents Obama, Reagan or Kennedy. In fact, the unemployment rate has been lower than today in only 23 of the 576 months since Jan. 1, 1970 — which translates into just 4 percent of that time.
The July jobs report is further proof that wages are going up again. The report stated that over the past year, “Average hourly earnings for all employees on private, non-farm payrolls rose…by 2.5 percent.” That is a higher gain than those reported in the vast majority of jobs reports under President Obama.
This wonderful news is confirmation that Trump’s broader economic recovery strategies are working. Last week, the stock market broke historic records, and the Dow hit an all-time record high of 22,000 on Tuesday. Real economic growth reached 2.6 percent in the second quarter. The Washington Times reported on Aug. 1: “Corporate earnings for the second quarter are beating forecasts at the highest rate in at least nine years.”
The very steep recession following the financial crisis officially ended in June 2009. Historically, the worse the recession is, the stronger the recovery typically is. Economist Milton Friedman first noticed that the economy tends to grow faster than normal for a while to catch up to its long-term economic growth trendline. Based on that metric, the economy should have come out of the recession booming, but former President Obama stifled business and economic growth in every way he could.
President Trump has since reversed many of those crippling Obama-era regulations, and it’s having an incredible impact on businesses. For the first time since 2011, America’s largest companies are showing two consecutive quarters of double-digit profit growth, according to a report in The Wall Street Journal.
And after seeing a 15% increase in the first quarter, data from Thomson Reuters shows that earnings at S&P 500 companies are expected to rise 11% in the second quarter. In fact, nearly 60% of the firms in the index have reported second-quarter results so far.
And then there’s the fact that American companies are raking in revenue, despite the fact that several policy initiatives created in an effort to help boost companies’ bottom line, such as corporate-tax cuts and increased government spending on infrastructure, have been put on the back-burner while everyone dealt with the drama of the GOP’s recently-failed efforts to repeal and replace Obamacare.
The president met with small-business owners at the White House on Tuesday, where he told them, “We’re setting economic records, and we’re very proud of it. We’re unleashing a new era of American prosperity, perhaps like we’ve never seen before. I think the media’s actually going to be forced to cover it pretty soon.”
Al Rodriguez, who owns 14 Sport Clips barbershop franchises in the Pittsburgh region, attended that meeting and came away feeling confident about the future under President Trump. “They’re saying the right things with respect to health care reform, tax reform and regulations,” Mr. Rodriguez told reporters. “Tax reform is critical because of the uncertainty of what I’m going to pay every year.”
President Trump also hinted that there is more good economic news on the horizon, saying the government will release “earth-shattering” numbers next week on domestic energy production. Stay tuned…