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Trump’s 'blue-collar boom' is a complete myth..

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If you’re beating inflation by 1%, is that a “boom”?

 

President Trump thinks so. In a speech at the annual gathering of the ultra-rich in Davos, Switzerland on Jan. 21, Trump declared that his presidency has generated a “blue-collar boom” and a “roaring geyser of opportunity.” “The American Dream is back,” Trump said. “No one is benefitting more than America’s middle class.”

 

As with many of Trump’s scripted speeches, a few select facts provided by White House economists are somewhat correct. But Trump’s overall characterization is not, and as usual, Trump falls back on the bogus conceit that everything was terrible before he arrived in Washington, while everything is fine now.

 

Trump has presided over an economy that has generally improved at about the same pace since 2013 or so. The pace of job growth and stock-market gains—frequent Trump bragging points—are about the same as they were during President Obama’s second term. And Trump’s focus on short-term comparisons obscures pernicious problems that no president has figured out how to solve, such as exorbitant health care costs and worsening wealth and income inequality.

 

 

Providing context for some of Trump’s claims in Davos highlights the extent to which he’s overstating prosperity. Examples:  

The “blue-collar boom.” Here’s the trend in manufacturing employment since 1980:

Source: Bureau of Labor Statistics

Source: Bureau of Labor Statistics

Does this look like a boom? The U.S. economy hemorrhaged manufacturing jobs from 2001 to 2010, with a modest recovery since then. The pace of job creation in manufacturing accelerated slightly in 2018, but it slowed again this year and declined in December. Trump’s tariffs on imports have raised costs on manufacturers and depressed output, the opposite of what he promised as a candidate in 2016.

 

“Wages at the bottom of the income ladder are enjoying the largest gains.” Average hourly earnings for production and nonsupervisory workers—generally considered lower-income blue-collar laborers – grew 3% in 2019. Inflation in 2019 was 2.3%. So those workers are gaining on inflation by less than 1 percentage point per year. But that’s only true for families not exposed to out-of-pocket health care costs, which are rising at least twice as fast as overall inflation.

 

“Since my election, the net worth of the bottom half of wage earners has increased three times faster than the increase for the top 1%.” This is true, according to Federal Reserve data. Lower-income Americans have mostly benefited from the rebound in home values that began in 2012. Yet the bottom 50% controls just 1.5% of the wealth in the United States, while the top 1% controls nearly one-third. Wealth inequality in the United States is nearly the worst among advanced nations, an insidious problem nobody has come close to solving.

President Donald Trump listens before delivering the opening remarks at the World Economic Forum, Tuesday, Jan. 21, 2020, in Davos. (AP Photo/ Evan Vucci)
President Donald Trump listens before delivering the opening remarks at the World Economic Forum, Tuesday, Jan. 21, 2020, in Davos. (AP Photo/ Evan Vucci)

“Real median household income is at the highest level ever recorded.” True, but so what? In a growing economy this should always be true, as it has been many times before under many prior presidents. Superlatives based strictly on population and economic growth can mask important weaknesses. What matters more are per-capita measures. On the Yahoo Finance Trumponomics Report Card, for instance, Trump ranks third out of the last 7 presidents on GDP per capita, one reason his overall grade is a respectable B rather than the A+ Trump would probably give himself.

Trump is hardly the only politician to exaggerate his accomplishments and take credit for salutary developments that would have happened anyway. But he does have to justify an unpopular tax cut, a war on regulation, a confounding trade policy and a disruptive style of governing. Voters will have their say in November, letting Trump know whether they see the same boom he does.

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True enough.    Trump inherited the trend created by the Obama economy.    He can take no credit for any of it.   As stated the poor are still getting poorer and the rich getting richer under Trump.   The stock market started its recovery after the last disastrous GOP administration that ended in 2008.   Steadily Obama has made a sequence of good moves that saved our auto industry and put our economy in a positive growth trend.   He did the best that was possible in fixing our broken medical system.   Trump has stopped progress there despite promising a better medical system that covers everyone.    He lied.   In fact at this time there has been over 15000 fact checked lies by Trump.   He is no doubt the worst president in history.   He must be ousted.   

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Obama inherited the GWB. Gwb inherited WJC. Wjc inherited GHB, GHB inherited RWR. and so it goes reverse progression of lifetimes never the same since the details they manufactured serving realities replacing the instinctive awareness that life only lasts as long as simultaneously here regardless the 24/7 speculation..

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Our "roaring" economy is held together with duct tape and spit right now.  The Fed is pumping endless nearly-free money into the market on a daily basis, keeping god knows what sort of slowly crumbling investments and hedge funds propped up in the process.  When those borrowers tried to borrow on the open markets, we saw the repo interest rate vault up to 10%, which is code for, "No, we don't want to lend you anything, not even overnight, unless we can get stupid rich doing it, because you're in very, very rough shape." So the Fed stepped in and has been offering up loans at roughly 1.5% to the same borrowers that the open market already decided should be paying 10%.

 

Nothing to see here.  Move along....move along.

 

Trump is the ultimate distraction machine.

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1 minute ago, splunch said:

Our "roaring" economy is held together with duct tape and spit right now.  The Fed is pumping endless nearly-free money into the market on a daily basis, keeping god knows what sort of slowly crumbling investments and hedge funds propped up in the process.  When those borrowers tried to borrow on the open markets, we saw the repo interest rate vault up to 10%, which is code for, "No, we don't want to lend you anything, not even overnight, unless we can get stupid rich doing it, because you're in very, very rough shape." So the Fed stepped in and has been offering up loans at roughly 1.5% to the same borrowers that the open market already decided should be paying 10%.

 

Nothing to see here.  Move along....move along.

 

Trump is the ultimate distraction machine.


Actually, I agree with you completely. That being said, it was no different under Obama. Maybe worse. 
 

But the coverage we got for 8 years was very different.

 

Dont get me wrong....I’m in favor being level across the board, not just when it’s politically expedient. It’s time for a real conversation about unsustainable promises made decades ago. It will never happen as long as there is a political point to be scored. 
 

So we’re stuck. 

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so republiKlans....Lets have more of that FAILED TRICKLE DOWN costing us TRILLIONS!!

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The problem with Americans- the « poor » ones.. is they have spinners on their cars, nails done, designer bags, can buy smokes, drink, do drugs.. they can pull the money from somewhere for all of that- but can’t pay their bills, and want the government to give them food stamps and housing breaks. 
it pisses me off. It is a priority issue 

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If you look at the data at BLS QCEW, one will see that manufacturing is growing. However, that is a bit deceptive. Most of it is in electronic equipment and component manufacturing which is very likely to be automated. Exact specs and repetition are prime candidates for automation. One of the only reasons that companies like Tesla have not went further down that road is need to appease local governments with jobs.

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Benson is a myth... That he's actually intelligent or human

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49 minutes ago, splunch said:

DefensiveAgreeableEmperorpenguin-size_re

Our "roaring" economy is held together with duct tape and spit right now.  The Fed is pumping endless nearly-free money into the market on a daily basis......

 

relaxing-outside-smiley-emoticon.gif

You rookies need to go back to школа.

That nearly-free money is being dispensed via Spanky's tax-cuts!!

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1 hour ago, neue regel said:

FlimsyCavernousKite-max-1mb.gif
Dont get me wrong....I’m in favor being level across the board, not just when it’s politically expedient. It’s time for a real conversation about unsustainable promises made decades ago. It will never happen as long as there is a political point to be scored.

 

So were stuck.

 

giphy.gif?cid=790b7611aa8ced9fd742f2be06

 

 

Quote

 

punishment-slap-smiley-emoticon.gif

You've already FORGOTTEN how to beg the Dems for help....again??!!!!

 

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3 minutes ago, Phoenix68 said:

 

 

 


We’ve had enough of the Dems “help” on the economy. 

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7 minutes ago, neue regel said:

FlimsyCavernousKite-max-1mb.gif
We’ve had enough of the Dems “help” on the economy. 

 

relaxing-outside-smiley-emoticon.gif

Yeah.....we've heard.....just like the last time......

 

Quote

 

 

Quote

 

 

Quote

 

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4 minutes ago, Phoenix68 said:

 

relaxing-outside-smiley-emoticon.gif

Yeah.....we've heard.....just like the last time......

 

 

 

 

 

 


We have a spending problem that is going to get way worse before it gets better. 

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Poor things.

 

They are doing ALL THEY CAN to TANK THIS GREAT NATION for the SOLE PURPOSE of "gaining POWER" and nothing more.

 

Fact is, the ECONOMY and our NATION AND PEOPLE are doing FAR BETTER TODAY than they have in the past 80-90 years!!!

 

So either GET WITH THE PROGRAM, or SHUT THE FUC'K UP AND GO POUND SAND!!!

 

 

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14 minutes ago, Phoenix68 said:

 

relaxing-outside-smiley-emoticon.gif

Yeah.....we've heard.....just like the last time......

 

 

 

 

 

 

 

Oops.

 

Seems you LIE a LOT!!!
 

https://issuesinsights.com/2020/01/23/heres-a-tipping-point-the-left-wants-you-to-ignore/

 

FREE MARKET ECONOMIES are NOT JUST THRIVING, BUT THE POVERTY LEVEL WORLD WIDE IS DROPPING FAST AND EVEN MORE SO DUE 100% TO FREE MARKET CAPITALISM!!!
 

SOCIALIST NATIONS ARE ALL FAILING AND POVERTY IS ACTUALLY INCREASING IN THOSE NATIONS!!

 

Suck on that one, UNICORN TURD EATER!!

 

RevolvingCostlyAfricanrockpython-size_re

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