Another Trump Economic Triumph Embarrasses for Obama
The Trump economy continues to vex the Left.
They were certain that Obama had done all he could to torpedo the economy, but Trump finds a way to turn a sow’s ear into a silk purse.
On the heels of eradicating massive business-killing practices implemented by Obama, Trump got his tax cut approved. Much to the chagrin of the Left, corporations responded by giving out bonuses. Now, employees feel the tax cut in their paychecks. For most, the new money is significant, and a nice reminder that they work for themselves, not the government.
On April 15, more good news will come to taxpayers, as they get bigger refunds.
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So all this good news for workers, and now we get even better news. As AP reported,
Pay raises, the U.S. economy’s Achilles’ heel in its long recovery from the Great Recession, finally showed signs of accelerating last month — a trend that fanned inflation fears and sent bond yields rising and stocks sinking.
Wages grew in January from a year ago at the fastest pace in eight years, evidence that low unemployment is forcing some employers to pay more to keep or attract workers. The question is whether the gains will endure and spread throughout the economy.
U.S. employers added a robust 200,000 jobs in January, and the unemployment rate stayed at a low 4.1 percent for the fourth straight month, the Labor Department said Friday. But investors saw the wage growth as cause for concern. Higher pay could help swell inflation and spur the Federal Reserve to quicken its pace of interest rate increases in coming months.
If only Obama could take credit for this. But he has that troublesome video out there explaining that Donald Trump would need a “magic wand” to save Carrier.
But what he said next was far worse.
Because Obama explained to Americans that we would need to understand that manufacturing jobs would not return to America. He added that losing these jobs is the “new norm”.
Obama didn’t need to say this for most Americans to know that he had nothing to do with Trump’s economy. In fact, Trump dug out of an Obama hole, a hole created by quantitative easing and a bloated stock market.
Investor’s Business Daily reported the following:
Almost half — 48% — of the NABE survey of 119 of its member companies said that their wage and salary packages had increased during the last three months, while none reported reducing pay for workers.
That difference of 48 percentage points is the highest since January 2000 and third-highest since the survey started in 1982.
It doesn’t stop there, however. Over the next three months, “the (index) for expected wage costs increased from 46 in the October survey to 58 in January — the highest level since
this question was added to the survey in April 2014,” the NABE survey said.
So, in short, wages are starting to rise fast, a trend that is expected to continue, as companies invest more, add jobs and look for qualified workers to do them.
The widely followed tally by Americans for Tax Reform of companies either raising pay or handing out big bonuses following December’s tax cuts now stands at 275 — and rising.
And while the government wanted to mandate minimum wage hikes, many companies surpassed what the government wanted.
The Investor’s Business Daily article continues,
Companies as diverse as Apple and Wal-Mart are adding to the pay packets of their workers, in some cases making pending minimum-wage hikes moot, as in the case of Wal-Mart. Some three million workers have already seen a hike in pay, a bonus or more money added to their 401(k), the first sweet fruit of the tax cuts.
There can be little doubt as to the reason behind all this good news. In what’s expected to be a fast-growing economy, they want to retain their best workers. Moreover, companies have increased their investment in training their existing workers in order to retain them.
In an NABE survey, companies that have trouble hiring enough qualified workers say they’re “training (workers) internally” (31% of respondents) and “raising pay” (29%) in response to market pressures.
President Trump has created a feeding frenzy for the best workers. We haven’t seen this type of job market since the time of Reagan. Contrast this with the Obama Era.
The Dark Ages Part II
Since the 2008-2009 recession, wage growth for workers has been stuck at 2.5% or lower. Compare this to 3%-plus growth rate for wages before the financial crisis.
Under Obama, the economy failed to grow by more than 3% in any year, despite massive stimulus of nearly a trillion dollars. But the Obama Era failures also received record-low zero-percent interest rates from the Fed. Try to imagine Fed Chairman Janet Yellen’s job of keeping a lid on a stalled economy, all in an effort to not expose the truth. Obama has the financial acumen of an untrained baboon.
The average annualized growth of the Obama years was actually less than 2%, the worst performance since the Great Depression. Yet, Obama actually said that President Trump, ergo America should thank him.
Well, no thanks to that.