Wage growth has posted its biggest gains in nearly a decade, yet people aren’t buying homes, with real estate sales in a slump that has gone on for six months. Job growth is strong, with unemployment hovering just above 3 percent. But companies are not using Trump-era corporate tax cuts to invest in their businesses. What gives?
Americans have many reasons to feel confident about the economy and their prospects. But signs point to something else. People aren’t taking risks with big ticket items like home purchases, nor are companies plowing revenues back into their businesses at the level expected.
Some economists explain the tepid response to strong employment on Main Street and strong profits on Wall Street to uncertainty over the Trump Administration. While signs point to a robust economy, many Americans believe the erratic nature of the president could halt those gains with no sign of them returning anytime soon.
Trump has every reason to take credit for the bustling economy. Is America willing to grant him that? Trump is a showman first. He rose to prominence as a celebrity. The Trump economy has seemed like a magic carpet ride to some who also ask when the rug will be pulled out from under them.
CNN Reports: “Why isn’t Trump’s party in better shape given the stellar state of the economy? The answer to both of those questions is simple: Trump. Or, more specifically, that outside of his hardcore base, people just don’t like him.”
From CNBC: “His critics, a group that includes a legion of Wall Street economists, most Democrats and even some in his own Republican Party, don’t believe it will last. They figure the current boom will begin petering out as soon as mid-2019 and possibly end in recession in 2020.”
The litmus test will be the midterms, where several races highlight Trump-supporting Republicans vying against newcomers who represent everything Trump is not. High-profile races include gubernatorial elections in Florida and Georgia where the southern states seem poised to elect the first African-Americans. Meanwhile, a self-described socialist, Alexandria Ocasio Cortez of New York, is expected to sweep her election to Congress. No one is batting an eye. Instead of drawing controversy, she enjoys rock star status.
Voters also can thank Trump for that.