“Status quo, you know, is Latin for ‘the mess we’re in’” – Ronald Reagan.
Usually I follow the author of a quote with a summary about the author but Ronald Reagan needs no explanation. If someone is so ignorant of history that a summary is necessary, it’s a sad commentary about our educational system. Just “google it”.
Donald Trump is half way through the much talked about first 100 days. As expected he has shaken up DC similar to the way he conducted his campaign. Some in the country loathe him, what he stands for, how he conducts himself, etc. while his voters are as loyal as the day they voted for him. Everyone is certain that President Trump is determined to keep his promises and thus the mood of the country has changed and is more optimistic. You don’t need to look further than the stock market for confirmation of the shift. Markets anticipate future events and respond accordingly.
Unlike the last 8 years of disappointing economic performance the market is responding to Trumps agenda of growth, through cutting taxes, slashing regulations, bringing jobs back to the US, strengthening our military, dealing with illegal criminals, repealing Obamacare, to name just a few items. Over the last 50 days we have witnessed many steps toward his stated goals and the public is responding. Jobs are up, spending is up, capital goods orders are up, business owners are optimistic and that bodes well for our future.
While the media loves to tell us that Obama left the country in good shape, the stats tell a very different story. The one area Obama made us number one — TAXES!! American companies are burdened with high taxes and regulations, which is why our economic performance is dismal. America went from third place to the top spot during Obamas’ terms, which, when it comes to corporate tax rates, is nothing to aspire to.
But the bad news doesn’t end there! Investor’s Business Daily wrote about a study done in 2014 by the Nat’l Assoc. of Manufacturers which put the total cost of regulations to the economy at a staggering $2.028 TRILLION, or 12% of the economy. Put another way, the cost of regulations to an average firm is $233,182 per year or 21% of average payroll.
Regardless of what side of the aisle you occupy, it doesn’t take a genius to figure out that getting rid of the absurd regulatory burden and the confiscatory tax rates will help businesses grow which will in turn help consumers. After 8 long years of decline, it’s time to try a different approach and Donald Trump is the first elected individual to enact an agenda that is designed to get the economic growth rate above 2%.
Yes, the stock market did well during the Obama years but the Fed had everything to do with it. Obamas policies gave us part time jobs, stagnant wages, an explosion in welfare, along with a doubling of the national debt. Speaking of the national debt, the figure currently stated is $20 trillion dollars. The largest component of the budget is social security and Medicare. Both will continue to rise every year, while less money is going into the system to pay for them.
Now for the shocker!! Are you aware of the fact that the national debt does not include entitlement programs?? Put them into the debt figure and the result is roughly $100 TRILLION and not the $20 trillion debt we are told. The reason is that our dishonest politicians don’t want to include it for obvious reasons.
The bottom line is our fiscal house is a disaster and the establishment in DC just kicks the can down the road and hopes the day of reckoning doesn’t take place while they warm their chair. It truly is time to “drain the swamp” and if President Trump gets us started on that path, the country will be much better off and will be on the way to greatness, once again!!