The third quarter reports for U.S. GDP (Gross Domestic Product) have been released and the numbers are incredibly good news for the U.S. economy. For the second quarter in a row, GDP grew at a pace of 3 percent. This is an excellent sign because the average rate of growth since the great recession has been 2 percent. One percent might not seem like a huge difference, but to the world’s largest economy, it equates to hundreds of billions of dollars.
This is not only great news for the economy, it's a major cause for celebration of President Trump and his administration. While campaigning and even after being elected, Trump was lambasted by the mainstream media and by progressives. These groups, who literally don’t understand very basic economics, laughed at President Trump. They claimed that three percent growth is unrealistic; a fantasy; a joke. Yet within a year of being elected, the economy under President Trump has hit this mark for two consecutive quarters. Many pundits still argue that the Obama administration should take credit. However, I would like to give two reasons why this newfound growth directly correlates with President Trump.
The first reason in which President Trump has kickstarted the economy is through slashing burdensome regulations. Trump has slashed hundreds of regulations and issued an Executive Order which established that for every one regulation created, two must be eliminated. This is incredibly important in driving economic growth. Of course certain regulation is good. Unfortunately the regulations out of Washington D.C. in recent times have done far more to get in the way of growth than it does to help the economy. By slashing wasteful regulation, President Trump is letting the economy run much more efficiently.
The second reason why President Trump should be given most of the credit for the economy’s success is the massive boost in consumer confidence the U.S. is experiencing. Although it is debated by economists, in my opinion consumer confidence is by far the single most important indication of how the economy is doing. Consumption makes up about 70 percent of the US’s economy. That means that it is incredibly vital that people spend money in our economy to keep it growing. Consumer confidence is at a 17-year high and it is no coincidence.
President Trump has created a climate in which his deregulation, proposed tax plan, and business-friendly attitude have consumers feeling very optimistic about the economy, as they should.
Unfortunately, the economic prosperity President Trump has helped deliver has been met with criticism by some uninformed politicians.
“Today’s GDP numbers show the resiliency of the economy this administration inherited,” Sen. Martin Heinrich (D., N.M) said in a statement. “Instead of building on this foundation, President Trump has created a climate of uncertainty.”
I’ll give Senator Heinrich the benefit of the doubt and say he's just totally clueless about economics, but the bottom line is his statement is totally false. Statements like this and other erroneous claims from mainstream media and socialist-obsessed progressives represent the next hurdle President Trump must conquer in putting the economy into overdrive. President Trump has created the most optimistic business and consumer climate we have seen in many years. Business leaders are incredibly happy about the direction of the economy and the major influx of capital we have seen in the last 10 months. There could be more progress however, but many business leaders are afraid to even associate with the Trump administration due to the fear of backlash from irrational and ill-informed pundits that prioritize opposing Trump over the average working-class citizen.
I applaud President Trump for putting the hardworking middle class of the United States first and using all the tools at his disposal to jumpstart the greatest economy the world has ever seen.
Alexander Grzelak is a campus correspondent for The Daily Campus. He can be reached via email at email@example.com.