5 things to know about the US economy during Trump’s State of the Union
The US economy is growing steadily under Trump, just like it did in the last two years of Obama’s presidency. That may change in 2019.
During the
State of the Union address on Tuesday, President Donald Trump tried to persuade Americans that the US economy is booming — and that it’s all thanks to him.
“In just over two years since the election, we have launched an unprecedented economic boom, a boom that has rarely been seen before. There has been nothing like it,” Trump said at the beginning of his speech. “An economic miracle is taking place in the United States.”
By the end of his speech, he’ll likely point to the low unemployment rate and
robust job growth as evidence of his business skills. He’ll probably remind Americans that the US stock market had a great month in January — even though 2018 was the
worst year for stocks in a decade. (He’ll also definitely leave out the fact that manufacturing jobs are far from “
roaring back to life” as a result of his new trade deals.)
During the
State of the Union address on Tuesday, President Donald Trump tried to persuade Americans that the US economy is booming — and that it’s all thanks to him.
“In just over two years since the election, we have launched an unprecedented economic boom, a boom that has rarely been seen before. There has been nothing like it,” Trump said at the beginning of his speech. “An economic miracle is taking place in the United States.”
By the end of his speech, he’ll likely point to the low unemployment rate and
robust job growth as evidence of his business skills. He’ll probably remind Americans that the US stock market had a great month in January — even though 2018 was the
worst year for stocks in a decade. (He’ll also definitely leave out the fact that manufacturing jobs are far from “
roaring back to life” as a result of his new trade deals.)
Businesses have mostly welcomed the president’s hands-off approach to government regulation, but not all of them are benefiting from his agenda. The US steel industry is making handsome profits from steep tariffs his administration placed on
imported steel and aluminum last year. So are aluminum factories. Yet Trump’s obsession with taxing foreign goods has inadvertently
hurt farmers and US automakers that export their products overseas.
Even the GOP’s signature economic policy achievement, the Tax Cuts and Jobs Act, did little to
boost wages and
business investment.
However, the economy isn’t contracting, so things could be a lot worse. And it’s possible they might get that way. Wall Street banks are already preparing for the US economy
to slow down in 2019. The International Monetary Fund also expects the global economy
to cool down this year, partly because of the
trade dispute between the world’s two largest economies: the United States and China.
So, sure, Trump can take credit for overseeing steady economic growth during his first two years in the White House. But the story is more complicated than that. And
warning signs are flashing.
Here are five things to know about the state of the US economy.
The US economy is growing steadily under Trump, just like it did in the last two years of Obama’s presidency. That may change in 2019.
www.vox.com