Democrats Are Reeling as Trump Economy Soars
Sorry democrats, “affordability” may not be a “hoax” but the Trump economy is growing, and all Americans will soon be feeling the recovery!
Right now, by all leading indicators, the left’s fearmongering about the Trump economy is looking more and more like sour grapes. The recent CPI report, showing inflation of 2.7 percent — well below the expected 3.1 percent — was bad political news for Democrats. Since “Liberation Day” in April, when President Trump rolled out tariffs aimed at resetting global trade in favor of U.S. companies, the left and their media allies have warned voters that the White House’s actions would clobber our economy and set inflation soaring.
And, yet despite the Dems narrative, that really hasn’t happened. The tariffs have only modestly boosted prices. Instead, the Trump agenda of higher energy production, lower budget deficits and lighter regulation has brought inflation down. While inflation averaged 5 percent annually under former President Joe Biden, and in four years jumped by nearly 22 percent, as of November it is rising at 2.7 percent.
Let’s be real about who created the current “affordability crisis?”
As inflation continues to recede from the lofty 9 percent level recorded under Biden, voters may realize just how much damage was done by Joe’s budget-busting big government spending.
Another narrative that is under fire is that Trump-backed AI is a gift to billionaires but is going to destroy U.S. employment, much like the trade pacts of the 1990s that sent jobs overseas. But two new studies counter that claim. As it turns out, AI is actually creating jobs for Americans.
In its year-end note to investors, investment firm Vanguard writes that AI is not responsible for slowing job growth. They point to data showing that “the approximately 100 occupations most exposed to AI automation are actually outperforming the rest of the labor market in terms of job growth and real wage increases.”
The authors of the study suggest that “current AI systems are generally enhancing worker productivity and shifting workers’ tasks toward higher-value activities.”
These projections are reassuring, since the left has been issuing gruesome predictions about the rapid growth of AI. To quote Bernie Sanders, “there is a very real fear that, in the not-so-distant future, a super-intelligent AI could replace humans in controlling the planet.”
Even assuming there is some truth to Bernie’s alarmism, if the U.S. slows down its AI push, China will surpass us. Do we really want China dominating the manufacturing of the future? No — to let China take the lead would be dangerous indeed.
But the real truth is that Dems want to create roadblocks to AI to slow Trump’s success!
If the economy is humming next year, with real wages rising, inflation moderating and productivity rising — which is likely — Republicans could well keep control of the House. That would give Trump two more years to work on resetting global trade, reforming our fraud-riddled welfare programs improving our broken immigration system and possibly to move to other ambitions, like buttressing voter integrity.
The simply left cannot tolerate that prospect.
Bill has earned his initials on this one, while the numbers are spot on, the spin is incredible and a lie or two. He’s covered the waterfront, I will take a few posts to respond, ending with the debt/gdp ratio is in the singularly most important stat to judge a sovereign nation’s economic and financial stability. Bill ignore it, as well he should. It does not help his spin.
Bill says; “when President Trump rolled out tariffs aimed at resetting global trade in favor of U.S. companies,” which is not a stated goal although I am not sure anyone knows the ever-changing, always cloudy goals. And that’s a big Trump policy problem: no one knows what the goals are and WIFM. Remember the first goal: stop fentanyl from Canada and fix imbalance, bring mfg back from Mexico. Then, for the world it was bring factories back and create jobs. No, then it’s the truth: raise taxes. Trump actually said that he’s tariffing to rasie your taxes. It’s a VAT tax where the more you consume, the more you pay. And the products are every day, not value-added. It’s regressive to. It’s taxation without representation which caused a revolution once. The fact is Trump has loved tariffs as long as he’s loved the economic failure Hoover. Project 2025 is split on tariffs, mostly recommended for Euro-warfare, not Trump goals. However, Project 2025 calls for a consumption tax to replace the income tax: hello, McFly, anybody in there? It’s as good a rationale as Bill’s, and that’s my call. He will scream it’s about a level playing field and retribution, and then backdoor it in as a consumption tax while lowering income tax and declaring: mission accomplished. Kinda clever, actually, and completely unconstitutional. But under Trump, the tariffs will never go away unless you folks advocate for it.
And the shifting, unclear goals pinpoint a real problem. Under Trump there is less economic and financial stability and much more chaos and management-by-crisis.
Then Bill lies: “As inflation continues to recede from the lofty 9 percent level recorded under Biden, voters may realize just how much damage was done by Joe’s budget-busting big government spending.”
Biden faced an economy with an overabundance of money. Between Trump and Biden:
Round 1, March 2020: $1,200 per income tax filer, $500 per child (CARES Act)
Round 2, December 2020: $600 per income tax filer, $600 per child (Consolidated Appropriations Act, 2021)
Round 3, March 2021: $1,400 per income tax filer, $1,400 per child (American Rescue Plan Act)
Bill blames Biden, but Trump gave out $1,800, Biden $1,400 and come on, Bill, blaming 12/20 is a trap! Biden was warned, but he plowed ahead anyways. Why, because no one was spending the money under Trump. Pandemic, remember. Locked down and locked up money. Biden should have known. On top of this, all sorts of other new printed money flying around, basically at a 3:1 difference between Trump:Biden as in Trump printed three times as much as Biden. It’s on the record. The fact that Trump is part of the inflation reason does not absolve Biden’s financial blunder.
Even Horist points to both Presidents as the inflation culprits. And budget-wise, Bill is BUSTED.
The 9 percent receded during Biden who handed off a CPI that Trump has basically flat-lined as he continues to stay about 30% above target. One issue is that, like most economic statistics, it’s rearview. The people live in the present and can see prices for themselves. Killed the 2024 for Democrats, now you are up. You can claim 2.7% as success, but prices creeping up 3% per annum under Trump is regressive; the masses feel it mightily, the rich not so much. And they see it every day. Like Biden, your caterwauling does not help even if you do it until the cows come home.
Continuing on through the fog. I thank Bill for getting me to review the stats and I plan my 2026 strategy. I will say I cannot imagine any American cheering bad stats as political fodder given the affect on everyday Americans. I think we hate his policies, but bad stats hurt, even kill.
On spending Trump 1.0 started with 4.41T in 2017: higher than any year under Obama/Biden (BUSTED). He is not a saver, not a producer. Then, 4.5. 6.6, and finally, handing covid spending off to Joe: 7.3.
Joe spends: 7.7, 6.0, 6.1, 6.9 (remember, I said Biden lowering the Trump mistake, did good for three years, but falling asleep at the wheel like Trump today, in the fourth year. I fault him for election-year pandering.
Trump 2.0: year one looks to come in at 7.0, but this is early still but means, like following Obama/Biden, his Biden follow is an upwards trend, and getting worse if you look at 2026 budget.
I am hard pressed to say Biden is spending that much more, especially when looking at the deficit and, worse, yet, the debt/gdp ratio, what I hold as the most important economic stat for any sovereign nation.
In 2025, Trump basically matched the 2024 deficit that Biden has raised from his better year’s one and two. Not stellar and based on military and ICE spending alone, heading further South. Trump also owns the record for highest deficit ever in 2020.
Again, I am with Horist, they both spend too much. We are living on borrowed time, literally, and we ALL must pitch in to fix. It will take decades unless we want to really hurt a lot of people which is the same effect as continuing to do nothing. Took the greatest generation 35 years to pay down WWII until Reagan reversed the trend and set the upwards trend we have never backed off from from more than a moment in time.
I agree, the tariffs have not caused massive inflation yet but due to the program’s chaotic nature, I am not surprised either. Trump’s economic plan is mercurial, personal, and peevish. He personally picks winners and losers all the time. If you are a businessman, you are not raising prices on his mood and his tariffs are on one day, gone the next, modified after that. Often. Inventory flows get messed up, capital investments go on hold, all sorts of inefficiencies needlessly added to the system to satisfy Trump’s personality. Yes, energy production, oil production, is at record highs as they were under Biden in 2023 and 2024. Trump has personally attempted to kill alternative energy which hit records under Biden’s policy. Guess what, Trump set a record there too, even as he killed support. These things take time, but when you kill the growth portion of energy production, ultimately, bad things happen. And the tariffs have caused inflation, just not runaway.
Vanguard recently flipped it’s investment strategy from 60/40 to 40/60. I have been there for 18 months. When I play the equities game, it’s a toe in the water; either value stocks or picks I me gaming Trump’s mercurial comments. Got Pfizer on a deal, sold when Trump made his big announcement guaranteeing lower profits and some crowd of idiots bought and I sold on the bubble. It’s been ho-hum since then. I bought oil day one, it’s gangbuster, could not afford defense, but basically buy and sell based on Trump’s picking of winners and losers versus market-based reality. Previous Presidents just don’t do that knowing that chaos breeds less profit. Stability is the way to go.
We have no economic plan, just daily transactional decisions by one man. That’s not a strategy for economic success. While Bill is right on the money on his stats, I warn that a single report does not indicate a trend. Yes, great CPI, GDP growth, but the shutdown screws everything up. Next, I will look at the mother-of-all economic stats, the tale of the tape, the debt/gdp ratio.
IMO, or us, with massive debt, the real tale of the tape is our debt/gdp ratio, the one number that rules them all. That’s just me, most economists focus on gdp or gdp growth as the top dog stat and then the myriad of others beneath. Given where we are, too much debt, I say it’s the debt/gdp ratio and has been since Clinton. Until we bring it in line, or figure out why it does not matter, it’s the one stat to rule them all and when we totally collapse, it will probably spotlight the reason.
In layman’s terms, it’s sort of a gauge of how much you can borrow given your revenues. It’s assessing the probability of whether investors will float your boat. I am not against borrowing; I am against borrowing more than you can risk to gamble. Also, for all expenditures, the ROI is the most important thing. Even more important for borrowed bucks.
The “witching hour” is considered 100%: the effect – complete collapse of the dollar. Obama first pierced it, but was smart and astute and pulled back. We did not collapse. Trump 1.0 crushed it and Biden began to bring it down. We are still here. Ands Trump 2.0 looks to outpace Trump 1.0; be afraid….
Frankly, we don’t know the true witching hour, but like all great economists, I can tell you immediately after it happens :>). Fact is, it’s when investors pull their loans. We don’t know when and nothing we can do it about it.
Trump 1.0 was: 97.02, 98.45, 100.06, and 124,51 – another record. Biden was 118.4 (yea), 112.82,114.76, and finally, 98% — seems like moving in right direction. In Trump 2.0, year one, 124%, we are going off the cliff again. This is really bad and, more important, heading the wrong way. Quickly.
I am sorry Bill, but the debt/gdp ratio for Trump’s first year points to the highest leveraged economy in our history. That’s not good.
Why haven’t we collapsed? Because we are still the best game in town. If another sovereign nation makes inroads to that, it will be all over for us, pretty-fast as foreign investors leave in droves and only our Social Security nest egg is left to prop up the dollar. China looks better all the time.
Our money supply is the best in the world because we have a growing stable economy with reasonable debt and low risk to investors. We have eroded that a lot, more so every year. Trump is a debt giant. His personal ability to stay afloat is legendary. But a person is not a sovereign nation and he still does not get that. He wants to write down our debt, has said it a few times. This “thought” is so dangerous, I am pretty sure he got the “cease and desist” calls from people even he answers to. Ever since his first bankruptcy where he put his own assets at risk, he has played with other people’s money, a wise move. How he leveraged his loans post the DC Hotel disaster and Deutsch Bank dumped him, no reputable bank would pick him up, and he turned it golden, selling for an amount so high it does not make sense, and finding investors to float his personal baggage, is beyond most experts and hidden behind a screen. Love to know the interest rate or other returns. Now he is a cyrpto king and even if that bubble bursts, only his cash flow, not his assets will be affected. He is personally sitting pretty on free money, big bucks by those looking for access no doubt. However, he cannot manage a sovereign nation like his personal accounts even if using us as his piggybank. If he does not pay attention to the debt/gdp ratio, it will sink him and take us with him too.
No, Bill, some good stats but nowhere near a roaring economy and don’t get me started on his next rounds of “free money.” Like Biden’s, it’s an uneven economy with much pain at the bottom, and all the joy flowing to the top. And our foundation is weak due to our massive and growing debt. Larry and I are lock-step on the debt and our spending.