NTF Issue Paper: PRESIDENT TRUMP RESTORES JOBS & ECONOMY

NTF Issue Paper: president52. doc. 2-19.
NEBRASKA TAXPAYERS FOR FREEDOM ISSUE PAPER:
PRESIDENT TRUMP RESTORES OUR JOBS & ECONOMY.

BACKGROUND. Despite efforts by liberals to deny that President Trump has restored and invigorated our economy and boosted job growth with his tax cuts and other policies, our economy has resurged after the Obama Regime malaise. Former Pres. Obama laughed that Donald Trump would need a magic wand to restore manufacturing jobs. Our President has used that wand. Once inaugurated, President Trump waved his magic wand of simple economic common sense: Pro-growth policies of tax cuts, a tidal wave of deregulation, unleashing the energy sector, and renegotiating trade policies that had long killed American manufacturing. His astounding economic track record is the worst Socialist Democrat nightmare. It destroys the nonsense that Obama, the Democrats, and their media minions have crowed for years: that anemic economic growth, high unemployment, the collapse of manufacturing, and horrid trade imbalances were the “new normal.” Trump and his economic thunderbolt are exposing the Left and its policies as irredeemably bankrupt, economically and morally. We had a failed economy until Trump removed job-crushing regulations, restructured the tax system, and cut corporate tax rates, which all brought back manufacturing jobs. Trump did not believe the doom and gloom of the progressive globalists. He believes American best days are still ahead, and he recognizes that government is not the solution, it is the problem.

MANUFACTURING JOBS. During the 8 bleak years of the Obama Regime, the only sector that experienced consistently expanding job growth was government. At this same time, Obama presided over the net loss of 210,000 manufacturing jobs. President Trump has kept his pledge to help revitalize jobs in the manufacturing sector and prod U.S. companies with foreign investment to return operations to the U.S. For the first time in decades, more manufacturing jobs are returning to the U.S. than are going offshore. There was an increase of 207,000 manufacturing jobs in 2017. The manufacturing industry witnessed a stunning increase of 284,000 new jobs in 2018, the biggest annual job gain since 1997. Manufacturing added 32,000 jobs in December, 2018. That represents an increase of 12% over 2017. The U.S. Bureau of Labor Statistics (BLS) Dec. 2018 jobs report details that manufacturing jobs grew over 7 times faster under Trump than under Obama. In total, manufacturing jobs skyrocketed 714% faster under Trump. 312,000 non-farm manufacturing jobs added to our economy in 1 year. Under the Obama Regime, government bureaucrat jobs in state and federal employment grew at a rate 6 times higher than manufacturing jobs. Trump reversed this ratio exactly; new manufacturing jobs outpaced new government jobs by a factor of 6. The National Association of Manufacturer’s Outlook Index boasts its highest annual average in history. Under Trump tenure, manufacturing positions leaped upward, compared with 2016, when the sector lost 16,000 jobs. Under President Trump, the American economy has added 3.7 million jobs, 1/10th of those jobs in manufacturing. Jim Koch, owner of the largest American-owned brewery, Boston Beer Co., praised the Trump tax cuts, saying they helped him remain competitive with foreign companies who brew 85% of the beer in the U.S. “Manufacturers are bringing people back into the workforce, and we need this trend to continue,” said Dr. Chad Moutray, chief economist for the National Association of Manufacturers (NAM), in an interview with CNBC. “There’s, of course, more work to do to guarantee this growth continues. A growing gap between the number of manufacturing job openings and the number of skilled workers to fill them could derail much of the success we’ve seen the past few years,” Moutray continued. “It’s clear, however, that the U.S. manufacturing industry is running full-steam ahead, and smart policy decisions are putting the industry on the right track.” The manufacturing industry job growth contradicts the Obama 2016 statement that manufacturing jobs “are just not going to come back.” According to Forbes, the Trump Administration has nurtured an increase of 10 times as many manufacturing jobs than the Obama Regime as of October, 2018, and that number continues to increase. Most of the manufacturing jobs created in the last 2 years include durable goods, fabricated metals, computer products, and electronic products, according to the Labor Department. New blue-collar jobs started escalating substantially beginning in the 4th quarter of 2016 and accelerated in 2017. In the first quarter of 2017, they almost doubled again to 40,000.

ECONOMY BOOMS. The U.S. economy is continuing its longest streak of consecutive positive monthly job growth. During Trump time in office, the economy has achieved feats most experts thought impossible. Our Gross Domestic Product (GDP) grew at or above 3% for 2 quarters in a row for the first time in 3 years. The economy improved over the course of the year, with GDP registering at just 1.4% during the first quarter, strengthening to 3.1% by the second and 3.2% in the third. Compare that to the 1.9% annual growth under Obama. Economist Andrew Chamberlain at job site Glassdoor said business confidence has risen since Trump’s election because of expectations of tax cuts and deregulation. Expectation flourished among businesses that Trump would cut taxes and regulations and that he might erect tariffs or otherwise punish goods produced and subsidized overseas. Economic confidence reached record highs because of Trump free market policies. The Conference Board Consumer Confidence Index rose in Nov. 2017 to a 17-year high of 129.5. Small business optimism sets at record high levels, states the National Federation of Independent Business. Federal revenues spiral as the Trump economy booms. April, 2018 showed a record surplus of $214 billion. More than 5 million jobs have sprouted since Trump took office. On average, President Trump has added 82,000 more jobs per month than President Obama. 507 companies have given bonuses and wage hikes. Over 4.8 million employees received higher wages or bonuses. Wage growth grew at its fastest pace since the Great Recession, and the unemployment rate held “near a generational low” of 3.9%. Average hourly earnings significantly increased in February and have increased by 2.6% over the last year. Many companies have committed to increasing capital investments as a result of the tax reform overhaul, which will have a positive effect on growth moving forward. Businesses have invested $482 billion in new U.S. projects. During his first year in office, 3 million new jobs created, while the unemployment rate fell to 3.8%, the first time below 4% in 18 years. Unemployment remains historically low, as the number of Americans filing for unemployment hit its lowest point since 1969. 14 states have their lowest unemployment rates. The black unemployment rate is at its lowest ever recorded. 337,000 construction jobs created under Trump. Construction (a reliable indicator of economic growth) added 38,000 jobs in December and saw a total of 280,000 new jobs in 2018. Construction employment stands at its highest level since June, 2008. Job openings have reached 6.6 million, also the highest level recorded. The number dependent on food stamps fell by 2.6 million, or 6.2%, since Jan. 2017. The President said 3 million people have been lifted off food stamps since his election, a number he says will continue to rise. Since the Presidential election, over $5 trillion in wealth created for the economy. Job growth is the strongest since the Trump election, with 313,000 jobs created in February, 2018. The continual job creation since the election has yielded 2.9 million jobs. Goods-producing industries such as manufacturing, mining, logging, and construction collectively had the highest month-to-month growth since 1998. These were among many sectors experiencing significant growth. We saw the Longest Consecutive Positive Monthly Job Growth on Record. Total payroll employment grew by 213,000 in June, 2018 (18,000 over forecasts), led by gains in professional and business services, education and health services, and manufacturing. These jobs continue to outperform under the Trump Administration, with an average increase of 20,000 new jobs per month compared to 8,000 per month during the second term of the Obama Regime.

MORE GOOD NEWS. In 2017, about 2.1 million new jobs added to the economy, according to government statistics, compared to 1.2 million jobs created in 2016. According to the BLS, the economy added a whopping 312,000 jobs in Dec. 2018, far more than the expected 176,000. Payrolls increased by 2.6 million in 2018, the highest since 2015. Job growth also has meant significant wage growth. Wages are up a stunning 3.2% from 2017. December was the third straight month that the yearlong growth in nominal average hourly earnings was above 3%, not seen since April, 2009. Wages also given an assist by inflation being kept in check. The jobs boom is felt across most major sectors: Retail added 24,000 jobs in December, 92,000 for the year. Health care jobs increased by 50,000 in 1 month and by 346,000 for 2018. The unemployment rate is near a 50-year low. The July unemployment rate for individuals with less than a high school diploma fell 0.4% over the month to 5.1%, the lowest level since 1992. The July unemployment rate for adult men was 3.4%, the lowest since December, 2000. Unemployment among women is at the lowest level in 65 years. Unemployment among blacks hit 6.7% in December, 2018, a low according to BLS figures dating back to 1972. African-American unemployment stands at the lowest rate ever recorded, and Hispanic American unemployment also has reached its lowest levels in history, 4.5% last July. This was the second month in a row this rate for Hispanics has reached the lowest level recorded since 1973. Since January, 2018, the number of people working full time has increased by 2 million, while the number working part time increased by 245,000. In September, 2018, the number of people working full time increased by 935,000, explaining why average hourly wages have grown by 2.9% over the past 12 months, the highest level of annual wage growth in more than 8 years. Thanks to Trump deregulation efforts, businesses across the country are hiring, and more Americans are working better jobs for higher pay.

STOCK MARKET SURGE. The Dow Jones Industrial Average has hit record highs more than 80 times under Trump, including closing higher than 26,000 points for the first time. The Dow climbed past this 26,000 milestone on Jan. 17 and halved the distance to the next 1,000 point breakthrough less than ten days later. During his first year in office, the Dow saw its best year on record under a Republican president. The day following his first address to the country in 2017, the S&P 500 surged 1.5%. The Dow and the S&P 500 ended the month with their strongest January gains in 30 years. The S&P 500 rose 24%. The stock market has jumped 27% amid a surge in corporate profits. In the years since the inauguration, the Dow climbed 32%, advancing an extended bull market. Investors encouraged by the Administration pro-growth economic policies, which have included tax reform and deregulation. This Administration also plans to enact a $1 trillion infrastructure plan in 2019, which would provide another sizable injection of capital into the economy by both the federal government and the private sector. The Trump economy is firing on all cylinders, leaving the Left petrified. Economic news so good that it sent the Democrats and their allies in the liberal media into full bury-then-ignore mode. Their pathological hatred of our President blocks them from reporting the truth about the booming economy he is delivering, because it makes him look good to investors and helps him politically.

SPECIALIZED TRAINING. President Trump signed an executive order expanding apprenticeships, recognizing the necessity for additional quality alternatives to 4-year colleges. His order began a new process that makes it easier for businesses to create and manage apprenticeship programs, providing thousands access to an affordable education that leads to comfortable employment. A presidential memorandum directed the Sec. of Education to prioritize Science, Technology, Education Movement (STEM) education with a focus on computer science. Major private sector technology companies and groups pledged over $300 million to direct this initiative as a means to train future employees.

ACCENTUATING WOMEN. This Administration prioritizes the economic empowerment of women as a key element of the Trump commitment to gender equality in economic growth. In 2018, his Small Business Administration (SBA) loaned about $500 million more than the previous year in capital to female-owned businesses.

REGULATION KILLER. President Trump eliminated unnecessary job-smothering regulations beyond all expectations. In 2017, he far exceeded his pledge to kill regulations, kill 2 for every new one, by actually issuing 22 deregulatory actions for each new action. He ended rules and regs hurting farmers and energy producers, such as the Waters of the U.S. EPA rule that would allow the feds to regulate farm ponds and streams. Regional and local banks and credit unions won relief, after the President signed legislation reducing harmful requirements imposed by the Dodd-Frank Act.

FAIR TRADE. During his tenure, President Trump has replaced free trade, which suctioned jobs out of the U.S. and threw thousands out of work, with fair trade and reciprocal trade deals that protect U.S. workers. He soon withdrew us from the Trans-Pacific negotiations and agreement that risked our intellectual property with Red China and its unfair trade practices. Trump improved the KORUS trade pact with South Korea, which will permit more American vehicle exports to South Korea with lower tariffs and increase American pharmaceutical access there.

GREAT EXPECTATIONS. U.S. economic growth will defy expectations again in 2019 thanks to a business investment boom and the Trump trade strategy, said White House economic advisor Kevin Hassett. The chairman of the Council of Economic Advisers beamed optimism that even a slowing housing market will not hamper the overall boom. Every 3 months, CNBC surveys its Global CFO Council to obtain its opinions of the global economy. The council includes Chief Financial Officers of the largest 113 companies that combined are worth almost $5 trillion. The latest survey shows that these CFOs see only one economy in the world that is currently blasting off, the U.S economy.

TAKE ACTION NOW. Contact the NE Capitol Hill delegation to support the Trump economic agenda in Senate and House legislation. Write a guest editorial to your local paper and call into a radio talk show praising this Trump agenda. Email netaxpayers@gmail.com to join the NTF President Watch Project.

Research, documentation, and analysis for this issue paper done by Nebraska Taxpayers for Freedom. This material copyrighted by Nebraska Taxpayers for Freedom, with express prior permission granted for its use by other groups in the NE Conservative Coalition Network. 2-19 C.

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