Is this a healthy economy?
Is this a healthy economy?
There are a lot of indications, not least of which the rhetoric coming out of the White House, that the economy is not as strong as has been sold.
While the American left would have everyone believe that banks and investors were to blame for the 2006-2008 subprime mortgage crisis and the resulting recession (and they do share some part of the blame), it's not quite that simple.
The only thing keeping the United States economy out of a significant recession have been low interest rates...
It is obvious something is holding the economy back, but no one is dealing with the underlying problem.
Trade talks with China remain a wild card that can stave off an economic slowdown in 2019, or, if things go south in trade negotiations, take the economy of both countries down with it.
There are some fairly unusual things about the economy in the Trump Era, that are reminiscent, albeit opposite, of the Carter Era.
As rosy as the economic data seems, there's still some pretty serious questions hanging over this economy.
How do you operate a national economy, let alone the global economy, on a commodity so small that an errant box fan could conceivably wipe out an individual's wealth?
Donald Trump whined about the Federal Reserve doing what it has to do to cut off rising inflation rates...
The fact that so many Americans are not participating in the labor force today, a problem that exploded under Obama, so he bears responsibility, is the single largest problem facing America today, and Trump and his supporters never talk about it.
Americans should remain skeptical of the rosy picture painted by the latest jobs report, because fundamental problems in the economy remain.
There are a lot of things that look good in the last few quarters, and growth remains solid, particularly if the 3.5% preliminary GDP growth rate holds through revisions, but there are still some nagging doubts that won't go away.
While the economy continues to churn along even into 2018, well beyond what I had predicted, two recent events indicate that the gravy train may finally be coming to a long overdue halt.
The current administration's economy has only outperformed the average performance of the previous administration (post recession) eight months out of the last twenty-one months, or roughly one-third of the time.
Despite numerous deregulation victories and his incessant bragging in 2016, Trump's economy has created more jobs than Obama's second term (post recession) economy only 7 out of the last 20 months.
At 157,000 net jobs created, the preliminary numbers in the July Jobs Report from the Bureau of Labor Statistics came in well below the 190,000 jobs expected by market watchers, and well below the average established during Obama's second term.
While the quarterly GDP growth rate hasn't been below 2.0% since the first quarter of 2017, it also hasn't been above 5.0% since the second quarter of 2014, and it's a long way from the 7.0% rate in the third quarter of 2003.