Beauty is in the eye of the beholder and apparently, according to the mainstream media, so is economic growth.
*In Friday’s New York Times, Nelson D. Schwartz wrote a piece headed “LIttle sign of a Trump Bump in the Economic Forecast.” He says that consumers are more confident, but doesn’t say why. Nor does he go into the detail that consumer confidence reported two days ago hit their highest levels in 16 years. No, in the Times, consumers are just “more confident.” That’s what I call damning with faint praise. AND giving a very distorted picture of the situation.*
Schwartz continues in his opening paragraph that “stocks are up five percent since the start of the year.” That’s factual, but, again a distortion. Why start at the beginning of the year? President Trump was elected November 8, 2016. Since then, stocks have risen something like 12 percent. Not quite the same picture, but the same result. Somehow five percent doesn’t sound nearly as impressive as 12 percent. Additionally, this stock market gain has put something like $3.0 trillion into the accounts of investors. A lot of people are a whole lot better off in their IRA accounts since the election.
Elsewhere, I saw news stories on the fact that stocks had declined for eight straight days as signs of the President’s failure. But, in that recent selloff prices only declined less than two percent. Remember, this followed a run up or around 12 percent. Clearly, a two percent decline after a 12 percent gain is not unwarranted.
The Trump presidency is 70 days old. I think the economy has already benefitted greatly and his policies are still in the process of being implemented.