It was a funny and novel moment in the United Nation’s General Assembly when Donald Trump’s self-praise caused world leaders to burst into laughter. At the same time, it was good on Trump’s part who handled the situation very well by laughing alone and moving on without showing signs of being offended. The world might like this gesture from him. In a similar fashion, there are a few things that even the opponents might like about Trump’s economy. “While it gets painted as being bad all over, that’s not the case at all”, says Guy Galboiz, an Internet Entrepreneur and Crypto Investor.
Guy Galboiz further highlighted some things that have improved since he took over the office and one needs to acknowledge that.
Before diving into the positive impacts of Trump’s administration on American economy, it is important to get a gist of the background. Right off the bat, Trump never really cared much about America’s ties and friendly relationships globally. He did not emphasize too much on how he wanted America to impress other countries of the world with its financial support and supervision as the big brother. Instead, he wanted to make America great again. In short, he was clear on his stance right from day one that he wanted to improve America and America alone.
If America’s rise hurts the feelings of its allies, he won’t stop. Even if American companies with their cash stored in foreign countries show frustration over his pro-American decisions, he won’t stop. The Big Beautiful Wall proposed by him between America and Mexico was to protect the Americans. He did not want Muslims to enter America unless they sorted out their issues. He just did not want people to bring their issues to the US. He imposed heavy tariffs on imports from China because he thought China was hurting American economy with its way of trading. He introduced economic policies that somewhat pushed large corporations to bring their cash reserves and some jobs home.
Guy Galboiz further shows that when we talk about the internal economy of the country, there have been some positive impacts in many ways. The first thing that got better with the arrival of Trump in the office was the employment in the country.
The news about the reduction in unemployment rate should start from Wisconsin, Michigan, Ohio, and Pennsylvania. These are the states that played the key role in helping Trump win the elections in 2017. Unsurprisingly, the unemployment rates have been going down in these states steadily. Not just that, the overall employment rates have also improved in the country. According to the recent statistics from the Labor Department, the job expansion in the country has been a record breaker. Just in May, there was a boost of 223,000 new jobs in the country.
The overall unemployment rate has dwindled as well. Currently it is at 3.8 percent, after adjusting is seasonally. Is this unemployment rate any special? The answer is yes because that’s the best the US has achieved in past 18 years. There has been good news from the job creation realms since new jobs have been created almost every month since Trump has taken charge of the office. On average, there is an increase of around 167,000 jobs taking place almost every month. Any claims that this is the best the US has done in job creation and that the downslide will start soon are not true at all. One has to keep in mind that the new job creation average is still lower than what it was post-recession i.e. in 2010 it was 185,000 jobs every month.
Things are looking great for the country. The job growth is not just temporary. Not to mention, even if it is temporary, there is no reason to not be happy about it. Some more information from Bureau of Labor shows patterns that could be astounding for the public. According to a recent survey from the Bureau, the employment rate has gone up so much in the US that presently, there are fewer people looking for jobs than the number of jobs available on the market. That is a problem too, but it is something that the public cannot hold as a gripe against the government.
However, the only strong argument against President Trump at the moment is that these new jobs are not a result of his economic policies. Not to mention, he has not been able to implement most of his proposed financial policies yet. Finance experts believe that most of the new jobs are being created in manufacturing field, especially automotive manufacturing. This growth, according to the experts, was already expected before Trump had even taken the office.
Second positive impact of Trump’s policies has been on the US stock market. The US stock market has been performing steadily since Trump’s takeover of the office. However, some claims from the president have not been very truthful. For example, at one point, he even announced that a large chunk of the national debt had been taken care of due to the boost in the US stock market. Toward the end of 2017, the top 500 companies of the country had gathered a huge $4 trillion value on the S&P Index. Once again, there can be arguments that this growth is not necessarily associated with Trump’s administration solely.
It is not just the S&P Index that has seen improvements in the recent years. In fact, NASDAQ has been on the rise too. NASDAQ composite index, when Trump had not yet taken the office, was around 5036.37. However, things have been great for the index since then and the same index has been at 7637.86. Such growth is only in the benefit of the country. The only question one can raise at this point is whether this growth will last or not. If it can have long-term impacts, then Trump is definitely doing something great. If the growth is only temporary, America has to find a way to sustain it and benefit from it while it is there.
Gross Domestic Product has been steady in the Trump era as well. Before getting into the office, Donald Trump had made claims of touching 4% annual GDP growth. However, these rates have only remained a dream for the US for the past 28 years. The claim was quite big from the president and many economic experts believed that it was not possible for a country to see such a growth in GDP in such less time. However, it seemed that President Trump had a secret sauce that others could not get their hands on. The recent growth in GDP has given a huge boost to the Trump administration in terms of receiving support from the Americans.
Just in the past few months of this year, GDP touched the mark that the president had promised at the time of fighting as the president of the country. The GDP touched the 4.1% mark as promised by the president and there was no way he and his administration was not going to flaunt it. It has to be clear at this point that the growth in GDP is one thing that even the opponents cannot argue against. One cannot say that Obama’s government had handed over a good and steady GDP growth to President Donald Trump and that the growth was not a proof of his good economic policies.
In fact, Donald Trump talked to the public and claimed that his policies were practical right from the start and the GDP was a proof of that. It must not go without mentioning here that American economy touching the 4.1% GDP was something that most of the economists had thought was not possible in any way. However, any claims against the Trump economic policies will look hollow or a failed attempt to fight back now. Did Obama hand over a steady and fast growing GDP to President Trump. The simple answer is no.
GDP growth was very slow when President Trump arrived at the office. However, with this economic policies, which have received a lot of criticism over the course of time, the US GDP crossed the 4.1% milestone and is expected to get only better in the coming times. The GDP of the country had not seen such growth for past four years, including the years of Obama administration as well.
However, economists have sat down and claimed that this growth might not be permanent. They have stated many factors that they think will disappear very soon and bring the GDP back to where it was a year ago. On the other hand, there are economists who believe that this growth is perfectly sustainable and will continue in the coming times. The first indication of the sustainable growth is the GDPNow model from Atlanta Federal Reserve.
As per Guy Galboiz, this model collects real-time economic data to anticipate GDP. According to this model, the coming times might see the GDP at 5%. Looking at the past performance of this model, one can trust it and treat it as an authentic source of predicting the GDP. According to some estimates, the country’s GDP might even touch 5% in the third quarter of 2018. It is an interesting time because the fourth quarter of 2018 has started and the economists are working on the data available from 2018’s third quarter.
President Trump has been hopeful about the data and final outcome, and he has been tweeting about it too. October 26 will be the day when the new GDP data comes out. According to the president, the next report will also show some extraordinary growth. According to US Economics Head, Neil Dutta, some extraordinary movements in the GDP have been noticed. At one point, there was an increase of 1.5% points. If such growth stays and sustains, the GDP report of the third quarter of the year might show that the GDP stands at 6.2%.
While such a growth is not likely to happen that quickly, it could end up being another record breaker if it happens. Since 2003, the US economy has not seen the GDP go that high. If GDP goes above 6%, it will be the best thing for Trump to prove that his economic policies are definitely in the favor of American economy.
One of the most important questions in the minds of those who have been supporting President Trump since day one is, “Are the opponents going to change their minds about Trump now?” Some recent surveys have shown that a few of the opponents might be changing their minds about the president now. These people could be the one who were sitting on the fence when the elections took place in 2017. They were not sure whether they hated or loved President Trump. With the recent good news surrounding the US economy, they might have just started to support the president.
An All-America Economic Survey from CNBC shows that economic approval of Trump has gone up in the recent days. A few months back, it was at 45%, but the recent statistics show that 51% of the people have approved his economic efforts. The change in the overall approval might not have been that much, but it too shows positive news for the president. The percentage of people that approves him as the right president of the country right now has gone up by two percentage points as well.
Looking back at how people had protested against the president right after his selection, these are some good signs for the Trump administration. If there was one thing that everyone knew from day one it was that he understands numbers. Opponents who thought he was not going to be good for the American economy were under the impression demanded proof of his commitment to the country. The recent statistics, which most of the economists were skeptical about, is the biggest proof that the president has to convince his opponents in his favor. In the end, the coming months will play a huge role in deciding how much of America accepts him as the president.