This is a Strong Start for The Trump Economy
Beginning last Spring, US GDP has averaged about 3%, that is much stronger than either during the Bush (43) or Hussein Obama (45) Presidencies.
This Winter, consumers are likely to pull back some and pay off credit-card balances accumulated during the holiday shopping season.
Then, with confidence buoyed by a stronger job market and optimism lifted by more robust exports and stock prices should drive household and business spending and GDP growth back into the 3% range again.
Overall, the US annual growth trajectory has risen to an average of about 2.7%, and taken on much healthier characteristics.
The Hussein Obama expansion depended heavily on subsidies to boost employment in healthcare, a bailout for the auto industry, and huge investments in the Crude Oil and Nat Gas sector triggered by enhanced efficient recovery methods.
Limits on Washington, DC’s financial resources will tighten healthcare spending and hiring. And look for Republicans lawmakers to further hobble Barack Obamacare and reimbursements.
Auto makers’ annual sales have flattened, so to stay relevant to growth, Detroit is planing roll out more EV’s and advanced computer-assisted drive features, as competition emerges from well-funded Chinese startups.
The recovery in Crude Oil prices revived drilling but sector investment is not growing at the “boom town” pace once seen. And much of the infrastructure that supports the expanded Crude Oil and Nat Gas sector several years ago and is current.
President Trump’s decision to free up leasing offshore will take several years to implement and will in part depend on the make up of Congress and the outcome of the Y 2020 Presidential elections.
Back into the lead will be new home construction as people move into new communities, amid high big-city rents, lower gasoline prices and more durable motor vehicles will make the suburbs attractive again.
Those millennials who have established good careers will have more bedrooms and less need to pay the private-school tuition necessary to educate children in big cities.
And look for the middle-class birth rate to tick up, and nothing creates demand for everything like more babies.
AI (artificial intelligence) has been with us since at least the 1980’s.
Remember those early programs took automation from the factory floor into offices by easing repetitive tasks that adhere to well defined rules.
The technologies that drove the last 20 years; the internet, home wireless applications and Smartphones made lives easier, but work not much more efficient.
The Bush 43 and Hussein Obama recoveries generated fewer jobs, but fewer improvements in productivity than was seen during 2-H of the 20th Century.
The programming behind apps on handheld devices will create jobs requiring considerably more judgement and make refine creativity and productivity
Now that the US has competitive business taxes and very much less government regulation, productivity, and the possibilities for wage gains among those who refine and up-grade skills, are about to spike.
Those Key economic elements will drive America’s exports, provided Washington, DC negotiates smart trade agreements with reciprocal access into foreign markets.
America has seen periods of lethargy before.
Examples are the Bush 43 and Hussein Obama eras, the early decades after the Revolution, the mid-1870 to early 1890’s and the Great Depression, but each time new technologies and entrepreneurship rescued the economy and the American Dream.
That is the Magic of our Republic.
And now it is back with the Trump policy of America First and the Trump mission to Make America Great Again.