In less than two years, the policies passed by the Republican congress as pushed by President Trump have proved to be wildly successful in energizing the American economy.
The core principles of Trumponomics: low tax rates, rollback of (productivity-destroying) regulations and fair international trade has again made the United States the world’s strongest economic engine.
Even in the face of some of these trade skirmishes (not yet wars) and rapidly rising interest rates by the Federal Reserve, this week we had proof — surging real income, soaring productivity, high job creation and record low unemployment.
Over the last 12 months, wages and salaries (not including benefits) increased by 3.1%, considerably above the 2.3% growth in inflation (Consumer Price Index), illustrating that we have real income gains.
Productivity has now surged over 2% (2.2% in Q3) for two consecutive quarters. This is about double the annual productivity growth during the Obama years.
Jobs increased by 250,000 in October well above the 190,000 that were forecasted. Such recent growth in jobs has reduced the unemployment rate to just 3.7%, the lowest rate since 1969 or nearly 50 years.
Read moreThe economic results are in: Trumponomics works!