I wanted to post a quick update on the economy, if that’s possible, and important factors both positive and negative. President Trump has been touting the economic impact his presidency has brought, and while there are some areas in which that has been the case, it doesn’t tell the whole story. Job growth has been strong under Trump, with companies adding an average of 188,000 jobs per month. However, the year before Trump took office, an average of 195,000 jobs were created per month, so job growth hasn’t really changed under Trump.
Another feather in Trump’s cap is the tax cuts that he signed at the end of 2017, promising that taxes would be lower for more people and that corporations would use the lowering of the corporate tax rate to further invest in the US economy. However, many feel that the tax cuts unfairly benefit the wealthy and while some companies offered a one-time bonus to employees, it didn’t raise wages and could be seen as a way to keep lower level employees happy. Most companies are taking advantage of the lower tax rates to buy back their own shares, which drives stock prices up so the people who benefit are those that own stock in these companies.
Healthcare remains a contentious issue as many Americans are facing rapidly increasing healthcare costs and as far as I’ve seen this administration has not put forth any tangible effort to address this issue. While Republicans tried desperately to repeal the Affordable Care Act, they offered no plan to take its place and have done nothing to help reduce the mounting costs of health insurance for the middle and working classes.
The economy is dependent on many long term trends as well as short term stimuli, so it is naive of Trump to claim responsibility for the benefits as seen with job creation. But, it also means that we cannot truly judge the effect his presidency will have on the economy until year 3 and 4 when some of his policies fully come into effect. The tariffs could be beneficial or devastating, and the income inequality gap could widen as the wealthy take advantage of the tax cuts while the middle and working classes stagnate. However, for right now the economy is doing alright, garnering a B rating from many economists. If you have further questions about the effects Trump has had on the economy, contact me.