December 1, 2020

It’s the economy stupid: Stocks on fire going into 2020

If voters decide the President’s fate based on the strength of the economy, President Trump has to be feeling good about his 2020 chances.

Nowhere is the strong economy more dramatically displayed than in the stock market, which just closed a strong decade with an exceptionally strong year.

Fox Business reports:

Tuesday’s gains will barely be a blip on the radar for a stock market that has roared higher in the 2010s. The benchmark S&P 500 was up 189 percent for the decade while the Dow and Nasdaq were higher by 173 percent and 294 percent, respectively.

…The major averages’ gains for 2019 were equally impressive with the S&P 500 gaining 29 percent while the Dow and Nasdaq added 22 percent and 35 percent, respectively. It was the S&P 500’s best year since 2013.

It’s unclear what exactly the Democrats plan to do to counteract the Trump boom. It’s not just the stock market – other economic indicators are strong as well.

In fact, the main Democratic talking points on the economy are growing stale, and trying to throw shade at Trump’s success by harping on inequality might be a losing cause as well.

As Axios notes:

Workers at the bottom of the pay scale have been feeling positive effects on their wages at the end of 2019 — especially when compared to those at the top.

Pay rates the bottom 25% of wage earners rose 4.5% in November from a year earlier, while wages for the top 25% of earners rose only 2.9%, per data from the Federal Reserve Bank of Atlanta.

Low unemployment and a booming stock market have one thing in common – they make strong talking points for the president’s re-election campaign. For a candidate that campaigned on the strength of his business savvy in 2016, it’s a very good look.

Meanwhile, media naysayers, including economic “experts” who trashed Trump’s 2016 campaign trail promises, have egg on their faces.

In just one example, a CNN piece in 2016 touted the expertise of economists who cast doubt on President Trump’s unemployment promises:

On top of that, the economy is already near what economists consider full employment, meaning the unemployment rate can’t go much lower.

The unemployment rate is 5% and was as low as 4.7% earlier this year. It can’t go much lower because there will always be people leaving jobs or searching for them.

That was 2016. Today, the unemployment rate stands at 3.5%.

It’s unlikely that CNN will issue a mea culpa, but for independents and swing voters, it might not matter.

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