“Republicans Aren’t Bragging About the Economy
Tax cuts? Job growth? Nah. GOP candidates prefer scary stories about immigrant crime.”
We shouldn’t all be surprised that GOP candidates not relying on economical achievement of the Trump’s administration. Election are won on the negative aspect of the current issues and not the positive part of it. Campaign strategies are based on finding negative issues and promise to flip them over.
But let us forget for a while the midterm election GOP strategy and why the Republican Party is not using the President Economical Achievement to keep their majority in the Congress. Let us explore and concentrate on the promises made by President Donald Trump during his campaign trail of lifting the economy growth to up to 4% per year. This rate was not seen for a decade since Bush second term in office. The 2008 depression and bailing all the Ailing Financial Institutions made the objective unachievable.
The miracle came, and GDP grew from 2.2% in the first quarter to a 4.1% annual rate in the second quarter. It 0.1% above what President Trump promised.
Economists disagree on the long durability and life expectancy of these numbers and consider them to be momentarily, knowing that there is a trade war on the horizon.
Let us forget about the prediction for future number and concentrate on the Sate of the Economy in the Trump’s Era on Four Different Fronts: The Unemployment, Consumer Spending & Saving, Mortgage Payments and Corporate Profits
- On the Unemployment Front it 4% the lowest it has been in decades, but wages are still almost flat with 1.2% from last year according to the Bureau of Labor Statistics.
- Consumer spending has been doing well for the last few years but has been growing and doing better due to President Trump’s tax cut. Saving now is 3.2% very close to the lowest of 1.9% in 2005. This is not a good sign if the country is hit by a new recession there will not be enough saving to compensate for a job loss or any unanticipated financial burden.
- Late mortgage payments have been declining, after the last decade real estate disaster started to fade, the number of foreclosures is at its lowest in 17 years. Consumers are still spending more of their income on debt service payments. This might get worse if the present administration decides to raise interest rates.
- Corporate profits in second-quarter earnings are very strong, even after-tax corporate profits went sky-high in the first quarter of this year due to the Trump Tax reduction. Businesses depending on trade are very worried, that the Trade War that the President Started, might affect their business. Due to the tax cut the White House hoping that there will be more capital expenditure that will lead to higher wages, this yet to be seen.
The GOP candidates might need a more solid campaign strategy than the economy because even with all the positive results in the First and Second Quarter of this year, the Election date is in November, by then the Thirst Quarter results will be out. May the candidates be surer on the outcome of the upcoming figures or simply they do not want to take any risks knowing that a Trade War is coming.
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