The Trump Economic Catastrophe?

By John McClaughry

Steve Moore and Jonathan Decker write in Investors Business Daily that the liberal predictions of a year ago about Trump’s likely catastrophic effect on the U.S. economy are looking ridiculous. After quoting half a dozen oh-so-smug-and-certain left-wing observers, the authors offer the most ridiculous of all. It’s from an October 2016 Washington Post editorial: “A President Trump Could Destroy the World Economy”,

“Just for the record,”, the authors say, “ 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 Trump has systematically been at work dismantling.”

“As I’ve acknowledged many times, the roaring stock market and the surging rate of growth of the economy (which is now estimated at 3.5%, up from 1.6% in Obama’s last year in office), could turn against Trump in the months and years to come. It’s quite possible that the market exuberance over Trump’s deregulation and tax cut policies have run too far ahead, though I’m predicting 3% to 4% growth for 2018 with the Trump tax cut kicking in. But what is certain at this point so far in Trump’s presidency is that anyone who sold stock on the basis of predictions by liberal ‘experts’ like Larry Summers or Paul Krugman or Steve Rattner missed out on a 30%-plus surge in their financial wealth.”

If one can overlook Trump’s often stomach-churning narcissism – not easy –  at the moment his Presidency seems to have produced a big adrenaline shot for a relatively stagnant U.S. economy. Let’s hope it continues strong, while Trump and Congress start shrinking government spending to fit within revenues.

{ 2 comments… read them below or add one }

Simona Kragh, Ph.D. January 2, 2018 at 6:03 pm

I agree with the prediction that the US and world economies are likely to display outstanding growth in 2018. It will be interesting to see how the mainstream media will try and disguise it and, even more interesting, how the American constituency will react. In the 1980s, people believed what they saw and experienced, granting President Reagan the landslide re-election of 1984. I hope today’s voters are going to be as savvy.

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William Hays January 6, 2018 at 3:42 am

I have a bunch of CDs (Certificates of Deposit, not Hollywood trash) that pay an anemic 0.8% interest. Thanks, Janet Yellen, and BHO! My common stocks (mostly Berkshire Hathaway and Caterpillar) are soaring! Thanks, Donald Trump! Le bon tiemps rollez!, or some such.

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