Lots of good economic news this week, with an outsized increase in employment, especially in the private sector. And a much lower than expected report on consumer prices.
All this with a stock market hovering around 50,000, amid booming productivity, low energy prices, and more than a trillion dollars in EPA deregulation. And even a Gallup poll shows that economic confidence has been restored by 49-36%.
So you really have to wonder why the Wall Street Journal writes an editorial that “America has run out of patience with the Republicans.”
If there ever was a real affordability problem, the Trump economy is now crushing it.
The latest figures from January’s strong jobs report showed manufacturing workers getting a raise and working longer hours. What some economists, including myself, call the proxy for wage income, which is hourly wages times hours worked, has risen to 5.6% annualized over the past three months in January.
Meanwhile, today’s CPI inflation report showed a rise of 2.4% over the past three months, so that gives a real wage of 3.2%.
Let me do it again: 5.6% on wages and hours worked, against a three-month CPI change of just 2.4%.
Trumponomics delivers results.
And the workforce is earning their raises with huge increases in productivity, and companies remain highly profitable with unit labor costs increasing by just 1.1%.
Technology is flourishing, the demand for energy is growing. President Trump is removing the shackles from oil, gas and coal, so-called baseload energy, by getting rid of the Obama-Biden threat finding that was never turned into law anyway. So average cars can probably end up somewhere around $2,400 cheaper. Another goal for the middle class.
Factory construction is booming. It was one of the strongest parts of January’s jobs report. And some of that can be traced directly to the president’s tariff-based two-way trade policy.
Plus 100% instant depreciation write-offs, creating a capital boom for businesses, with new investment meaning stronger employment and wages, and ultimately consumer purchasing power.
While it may be true, as President Trump told me this week, that he and his team need to work harder to get the message across, the fact is that the numbers are on his side.
And editors engaged in tired, old, left-wing Biden-esque criticism should really just give up on this.
The Trumponomics are working, and a midterm election victory for the Republicans is very much in sight.
