Search
Archives
Categories

This week, President Obama tried taking credit for what Maria Bartiromo has titled “the Trump Boom.” The truth is that President Obama’s policies have nothing to do with the reinvigorated economy. In fact, businesses are saying the opposite. According to Ms. Bartiromo, “Corporate earnings have risen and corporate behavior has changed, measured in greater capital investment. Businesspeople tell me that a new approach to regulation is a big factor. During President Obama’s final year in office the Federal Register, which contains new and proposed rules and regulations, ran to 95,894 pages, according to a Competitive Enterprise Institute report.”

These businesses certainly know why they’re doing what they’re doing. What they’re saying with their actions and their words is that President Obama’s regulatory policies stifled growth, not entirely but significantly, by adding tons of regulatory compliance costs. When capital formation shrinks, job creation shrinks, too.

Others have noticed that there’s been a change and have adjusted accordingly:

For the first time in a long time the world is experiencing synchronized growth, which is why Goldman Sachs and Barclays among others have recently predicted 4% global growth in 2018. The entire world benefits when its largest economy is healthy, and the vibrancy overseas is reinforcing the U.S. resurgence.

This paragraph is especially enlightening:

Much has changed this year. Companies from Broadcom to Boeing have announced they’ll move overseas jobs back to the U.S. American companies hold nearly $3 trillion overseas and may soon be able to bring that money home without punitive taxation. Businesses have begun to open up the purse strings, which is why things like commercial airline activity are rising substantially as executives seek new opportunities. Companies are looking to invest in growth.

Investing in growth requires employees participating in the rewards. When corporations get into ‘merger and acquisition mode’, employees suffer. It’s easier for companies to merge with foreign corporations, then get taxed at lower rates. Democrats can whine about them doing that but it’s their own fault. It’s easier to work with corporations than trying to punish them. The government never wins in those match-ups.

Obama recently said that President Trump doesn’t have an answer for how he’ll get the economy growing. Either Obama is an economic illiterate or he’s intentionally lying. President Trump’s answer is to lower taxes and reduce regulations. That facts speak for themselves. Economic growth has virtually doubled under Trump’s watch. Consumer confidence is soaring. Companies are moving back from overseas. Contrary to what President Obama said, this isn’t a coincidence:

Finally, there’s this:

The Federal Register page count is down 32% this year. Mr. Trump says red tape becomes “beautiful” when it is eliminated, and people who manage businesses certainly agree.

I’m not alone in thinking that Trump’s policies are working. I’m predicting that President Obama’s policies will be discredited within another year.

Technorati: , , , , , , , , ,

Leave a Reply