The US Gross Domestic Product showed an adjusted 7.4% growth rate (33.1 percent at an annual rate) in the third quarter of 2020 under Trump’s leadership.
The non-partisan Congressional Budget Office had predicted 4.0%. Despite the worldwide epidemic, 4.0% is a healthy number for an industrialized nation but this was nearly doubled.
Pre-COVID numbers for the economy had exceeded records and affected a bulwark to economic catastrophe. The G7 group consisting of Japan, US, UK and the Eurozone powerhouses individually saw only half the overall growth in GDP as the US from 2017 to 2019.
The Trump administration’s clipping back heavy economic and labor regulations as well as the consumer-friendly middle-class tax cuts were part of this equation.
Paycheck protection measures, direct payments and unemployment benefit augmentations accelerated the recovery but were not the engine. Charts going back to roughly the Civil War showed essentially only 1879, the Roaring 20s and Post-WWII spikes in a single quarter being near this jump.
Naturally, the uptick in COVID cases (not deaths) in US and spikes in Europe has tempered the good news. But the labor and work reports give reason to expect a balance and hope for continued growth.
Labor secretary Eugene Scalia said the job market shows “very strong trends”. On the work and labor front, the secretary noted that 110,000 people came off of unemployment benefits during a single week span in October. He noted over one-half of American states have unemployment rates at 6.7% or lower.
A key indicator, the wage growth of Americans that is often forgotten in the jumble of numbers, was noted in the statement from the White House:
“Total wages and salaries increased 5 percent in the third quarter and are now just 1.4 percent below pre-pandemic level.”
Conservatives are noting the shaky and regressive economic measures proposed by a Biden administration. These include a 21% to 28% rise in the maximum corporate tax rate; a hard knock for small businesses to bear.
An effective end to union opt-outs for individual citizens is on the table. Most significantly, the economic policy using the Green New Deal as true north and assenting to the Paris Accords is in his stated goals.
Economists of nearly all political alignments declare these can easily lead to a precarious dangling of new-found energy independence for the US. All of this offers a strikingly sharp contrast.
Watch this short clip of my interview with former White House Press Secretary Sean Spicer as he shares why we should vote to re-elect President Trump…
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