President Trump’s administration is taking credit for the 3.1% economic growth realized consecutively in the last two quarters but the truth is that it’s all about perception. What is important is whether it’s about economic policies, or perceived growth based on positive response to economic stimulus that are yet to be implemented. Apparently, this has been attributed to spending on capital equipment and Trumponomics are saying that tax cuts will
definitely propel the economy to another level. How true is this?
First Forward, Trump’s war of words with North Korean Leader and twitter tirades has had a drastic effect on the general economy. A case in point in Guam’s tourism industry which has suffered more than $9.5 million in the past 40 days. The housing industry has not been spared either, with very few sales being closed while mortgage interest rates are sky rocketing. This has been attributed to low supply despite high demand by prospective buyers. The trickle effect of economic growth touted by the administration are yet to be felt by the average American. In this case, citizens are still struggling with high price of consumer goods and uncertainty of the economy.
The federal fiscal deficit is at all time high $600 billion and this is up by $80 billion up from the previous year. The leading economic indicators also fell by 0.2% in a 12-month period which is not really a good sign. Despite the drop being caused by hurricane this is also closely related to people not being able to work. As a matter of fact, while the Trumps administration says that they’re bringing jobs back to America this cant be realized any time soon.
As stated, there is a misconstrued perception that Trumps economic policies are working based on the 3% increase. However, no major policies have been implemented that can directly spur the economy to new heights. The fact that more than 230,000 jobs have been created is just in line with other previous reports-nevertheless, it is vital to understand where they have been created.
Jobs have been created in the private sector rather that the public-and based on economic variables this cannot stand the test of time. Of course, employers in the private sector are anticipating that taxes will be reduced in their respective industries. However,it is imperative to take note these policies are yet to be implemented
The economics of tax related issues is, and will continue to be a major factor of whether the economy will realize any tangible results in terms of positive percentage growth. In this case, the pressing questions are what the tax will look like, how will they be implemented, and what specifics will be looked into by whoever will run the Fed will. As such, all these are pivotal to the whole issues that surround economic growth and sustainability. The question that lingers is; how will the economy perform even after dealing with hurricane mess?
The employment is still very high with, young illegal immigrants are still an issue, and other policies will be central on how realities will definitely from perceptions about Trumps presidency.