Under Obama we averaged about 1% yearly GDP economic growth. Trump is turning the tables on Obama and turning the world of the Economists upside down.
Once again we have to get back to our theme that the Liberal, Left Democrats do not know how to grow an economy and do not understand how free market Capitalism works. All they know is Socialism and redistribution.
Not only is the economy growing rapidly but unemployment is way down. We now have the highest employment rate of African Americans and Hispanics EVER!
Media pundits, businessmen, and even Nobel Prize-winning economists predicted a economic collapse would occur under President Donald Trump — but the 2017 economy tells a different story.
Doomsayers claimed that Trump had an uneven temperament and unclear policy positions, which would bring unpredictability to the markets. In response, investors would hedge their money and the markets would collapse.
New York Times columnist Paul Krugman, who won a Nobel Prize in economics, predicted just one day after the 2016 presidential election that the markets will “never” recover under Trump. Krugman wrote in The New York Times that Trump’s unpredictability would be particularly damaging to an already fragile economy.
Business tycoon Mark Cuban similarly stated back in September of 2016 that the stock market would crash if Trump won the presidency.
“If the polls look like there’s a decent chance that Donald could win, I’ll put a huge hedge on that’s over 100% of my equity positions… that protects me just in case he wins,” Cuban said.
Perhaps most infamously, journalist Kurt Eichenwald announced he was selling all of his stocks in his children’s education accounts in preparation of the stock market tanking.
Policy analyst Sean McElwee tweeted in December 2016 that economic experts were predicting that Trump’s economic plans would not help the working class.
Glenn Kessler of The Washington Post warned that former president Barack Obama was handing Trump a booming economy that was sure to falter once Trump took office.
Trump is being handed a great economy. What happens when it goes south? http://wpo.st/I6-P2
Trump is being handed a great economy. What happens when it goes south?
He’s entering office with low unemployment and high growth thanks to Obama.
How Trumponomics would be a disaster for the workers who wrongly believe he is their economic savior. My latest: http://washingtonspectator.org/trump-taxes-workers/ …
Trumponomics, Taxes, and the American Worker | Washington Spectator
Millions of voters believe putting Donald Trump in the White House will lift them out of the economic hell they have endured for decades, working more and getting nowhere except deeper in debt. They…
Financial journalist Caroline Baum insisted that Trump is “NOT good for economic growth,” explaining that his plans to renegotiate trade deals would crush the markets.
Sorry, @CGasparino, Trump is NOT good for economic growth. Markets know this. Peter Navarro is only 1 who who sees Trump’s plan as a plus.
So here is a rogues gallery of those who said the rally was impossible and boldly predicted the crash that was never to materialize.
- Mark Cuban. “I can say with 100 percent certainty that there is a really good chance we could see a huge, huge correction,” Cuban told CNN. “That uncertainty potentially as the president of the United States — that’s the last thing Wall Street wants to hear.”
- Erik Jones. “You would see incredible pressure on stock prices if Trump wins and everyone flooding into rare metals like gold and into bonds” in the U.S., Germany and the United Kingdom, Erik Jones, professor at the Johns Hopkins University School of Advanced International Studies, told Politico’s Ben White.
- Justin Wolfers and Eric Zitzewitz. “Given the magnitude of the price movements, we estimate that market participants believe that a Trump victory would reduce the value of the S&P 500, the UK, and Asian stock markets by 10-15%,” University of Michigan professor Wolfers and Dartmouth professor Zitzewitz wrote in a report that supposedly scientifically forecast the market’s reaction to Trump’s victory
- Andrew Ross Sorkin. The New York Times clomnist and CNBC anchor wrote: “In all likelihood, a Trump victory would lead to a swift, knee-jerk sell-off. Many investors will choose to sell stocks and ask questions later.” In fairness to Sorkin he hedged his believe in the sell-off by writing: In truth, it’s impossible to predict how the markets would settle into a Trump presidency, despite the speculation on all sides. In all likelihood, it will take time for investors to truly make sense and “math out” how his policies would affect the economy.
- Lawrence G. McDonald of ACG Analytics hedged also, predicting a massive sell-off followed by a relief rally. “Trump will create a colossal panic, but the relief rally will be outstanding,” he told Sorkin. Well, he got the rally right, anyway.
- Simon Johnson,a former chief economist of the IMF, a professor at MIT Sloan, a senior fellow at the Peterson Institute for International Economics, and co-founder of a leading economics blog, The Baseline Scenario had perhaps the most panicked reaction, in keeping with his status as America’s most authoritative economists. “With the United States’ presidential election on November 8, and a series of elections and other political decisions fast approaching in Europe, now is a good time to ask whether the global economy is in good enough shape to withstand another major negative shock. The answer, unfortunately, is that growth and employment around the world look fragile. A big adverse surprise – like the election of Donald Trump in the US – would likely cause the stock market to crash and plunge the world into recession,” Johnson wrote on October 29, 2016.
- Ian Winer, director of equity sales trading for the securities firm Wedbush, predicted a 50 percent fall in stocks if Trump won.
- Bridgewater Associates. “On Tuesday, Bridgewater Associates sent out a note to its clients predicting that the Dow Jones Industrial Average could plunge nearly 2,000 points in one day if Trump is elected president. That would be the biggest one-day slump in stock market history, by more than double, besting the 777 point plunge that happened on October 29, 2008, at the high of the panic surrounding the financial crisis. The drop would translate into a 10.4% dive, and immediately send the stock market into correction territory,’ Fortune‘s Stephen Gandel reported.
- Tobias Levkovich, Citigroup’s chief U.S. equity analyst. “A win for Donald Trump in next week’s election could take a big bite out U.S. stocks, according to the latest forecast from Citi,” CNN Money reported. “In a note to clients late Thursday, the bank said the S&P 500 will fall by 3% to 5% immediately if Trump is elected. A victory by Hillary Clinton wouldn’t move stocks significantly, it predicted.”
- Macroeconomic Advisers. “If Donald Trump wins the election, U.S. stocks (and likely many other markets overseas) will almost certainly tank,” Heather Long wrote for CNN Money. “How big of a drop? Forecasting firm Macroeconomic Advisors predicts an 8% fall in the U.S. A new paper out Friday from the Brookings Institute projects a 10% to 15% nosedive. You get the idea.”
• “Donald Trump’s first gift to the world will be another financial crisis.” — Headline in the U.K. Independent. “He gives every impression that he will soon be hustling America — and possibly the entire world — in the direction of another catastrophic financial crisis.”
• “I have no stocks. I advise people not to invest in the stock market, not now. Way too dangerous.” — Filmmaker Michael Moore, August 2017.
• “It really does now look like President Donald J. Trump, and markets are plunging. When might we expect them to recover? A first-pass answer is never… So we are very probably looking at a global recession, with no end in sight.” — Paul Krugman of the New York Times the day after the election.
• “Trump’s domestic policies would lead to recession.” — Mitt Romney, March 2016.
• “If Trump wins we should expect a big markdown in expected future earnings for a wide range of stocks — and a likely crash in the broader market [if Trump becomes president].” —Eric Zitzewitz, former chief economist at the IMF, November 2016.
• “Under Trump, I would expect a protracted recession to begin within 18 months. The damage would be felt far beyond the United States.” — Former Clinton and Obama chief economist Larry Summers, June 2016
• “Trump would likely cause the stock market to crash and plunge the world into recession.” —Simon Johnson, MIT economics professor, in The New York Times, November 2016.
• “Citigroup: A Trump Victory in November Could Cause a Global Recession” — Bloomberg Financial News headline, August 2016.
• “I have never seen an election in which the markets have so strong of a view as to what was good and bad about the outcome. And what you saw was the markets rallying yesterday because of the FBI thing on Sunday. And the reason I mention this particularly is if the likely event happens and Trump wins you will see a market crash of historic proportions, I think … The markets are terrified of him.” — Steve Rattner, MSNBC economic guru, October 2016.
• “Wall Street is set up for a major crash if Donald Trump shocks the world on Election Day and wins the White House. New research out on Friday suggests that financial markets strongly prefer a Hillary Clinton presidency and could react with panicked selling should Trump defy the polls and deliver a shocking upset on Nov. 8.” — Ben White, Politico, October 2016.
And finally, and most unambiguously:
• “A President Trump Could Destroy the World Economy” — Title of a Washington Post editorial, October 2016 Just for the record, the world economy is as strong today as it has been in at least a decade, as The Wall Street Journal recently reported. Now the left has to engage in logical contortions to explain how the red hot American economy is really a result of Obama policies — every which one Mr. Trump has systematically been at work dismantling.
This all comes from not understanding how economics work and how the actions of government can incentivize or disincentivize private business. Under Obama, the government was punishing success and running a campaign of class warfare. High taxes, burdensome regulations, and trillion dollar yearly deficit spending disincentivized business to hire and expand.
Trump’s tax reform – tax cuts – and removing of excessive regulations and reasonable spending incentivized business to hire and expand.
When business started to hire and expand people came off the welfare rolls, dropped food stamps, and went back to work. This increases the number of taxpayers so more money flows into the tax coffers of the US government. Same can be said for businesses. When new startups flourish and business expansion abounds, business pays more taxes.
YET DEMOCRATS ARE STILL SAYING THAT TRUMP’S TAX CUTS ARE ADDING TO THE DEFICIT. THAT IS A BIG LIE. TAX COLLECTIONS ARE WAY UP. Once again we refer y’all to the LAFFER CURVE.
AND WATCH WHAT DICK MORRIS HAS TO SAY:
Yet Democrats are calling for the repeal of the Trump tax cuts. They want the government to receive the crumbs back.
The Boston Herald’s July 29th headline screams: