Since bottoming in April, which followed some rate confusion, the Dow Jones is up 27%, the NASDAQ is up 53% and the S&P is up 37%. We don’t have many official numbers due to the government shutdown, but I’m going by the tremendous performance of the stock market. It tells us that a boom is coming. Maybe we’re already in it. And it is supported by Trump’s economic policies. And it also tells us that earnings are strong – and that profits are the mother’s milk of stocks and the lifeblood of the economy.
In particular, there is an increase in capital expenditure in all companies. And a lot of that comes from the immediate costs of one big, nice bill, machines, equipment, factories, advanced technologies, AI, quantum computers. It’s all moving forward. And even though the advances and declines in the economy are difficult to gauge, this is just the beginning of what will be known as the Trump boom, and the people will prosper.
It’s not just the business side, by the way, but next year consumers will likely get somewhere between $150 billion and $200 billion from changes in the IRS withholding tax for things like tax-free tips, over time, and seniors. These are changes that have been implemented this calendar year, but will take effect next year. And also remember that business growth means good-paying job growth.
Stephen Miller, White House Deputy Chief of Staff for Policy, discusses President Donald Trump’s floating tariff reduction controls and previews the administration’s future economic focus on ‘Kudlow.’
And please also remember that the supply-side policies of tax cuts and deregulation are counter-inflationary. Add to that energy production, which is now approaching 14 million barrels per day.
President Trump is right about gas prices. More than half the country now has a $2 hold on the price of gas. And as for affordability, after the Biden disaster, when real wages for workers collapsed by about $4,000, those wages have already recovered by about $1,500 in Trump’s first year. And this is just the beginning.
I love this Door Dash report showing that the daily essentials index has been flat over the past year. All these household costs remain stable. The cheeseburger index is up less than 4%. In many places it is flatter, even lower. And the breakfast staple index is actually down 14% over the past six months. This report comes from millions of Door Dash transactions.
Former Speaker of the House of Representatives Newt Gingrich weighs in on the Trump administration’s economic focus on the affordability of ‘Kudlow.’
When you couple that with falling gasoline prices, and commodity prices in general are up less than 1%, it’s hard to believe that inflation is a big problem.
Fortunately, the mass chaos of the Schumer shutdown is over. It is good for growth and will likely increase consumer confidence. The whole exercise was pointless and stupid, because many hardworking people in the military and at home paid the price of the Democrats’ civil war. But now that that fiasco is over, we can move on from the Trump boom.
