The higher a country’s debt to GDP ratio, the less healthy the country’s economy. With the GDP numbers released yesterday, President Trump’s policies have officially decreased the Debt to GDP ratio by 1.2% in the President’s first year in office.
According to government figures, the ratio fell from 105 percent to 104 percent, and while that may not seem like much, the ratio increased by 14.7 percent during President Obama’s first year.Obama increased the rate a total of 37% over his 8 years in office.Weird how the “Obama Economy” never really worked until Trump took over. So what has always been called the “Bush Recession” in his first two quarters was really The Clinton Recession, all along? Poor Obama, spent two terms blaming Bush .
Since his inauguration President Trump has focused his efforts on the security of the country and on the prosperity of its economy. The results of his actions are taking shape.
The US GDP has increased each quarter in 2017 with the 4th Quarter GDP increasing to $19.739 trillion – the highest GDP for any country in world history.
On the other hand, the President has curtailed US spending. The result is that the US Debt to GDP ratio decreased in 2017 from 105% to 104%.
No President in more than 50 years has decreased the Debt to GDP ratio in his first year in office by more than 1%.
The last President to do so was Nixon in 1969. Presidents Reagan and George W. Bush decreased the Debt to GDP ratio in their first years in office but by less than 1%.
In addition to the U.S. economy improving under Trump, the president has also managed to oversee reductions in total government spending, which helped lower the ratio as well.
Meanwhile, the stock market has also grown in value by nearly $7 trillion, to $30.6 trillion, during Trump’s first year.
Even ABC reported,
“In conversations with business and political leaders gathered at the World Economic Forum in Davos, Switzerland, there is almost zero mention of the controversies which consume coverage of Trump in America.
Instead, people talk about the real possibility now that growth in the U.S. economy could hit 4 percent this year — a positively Clintonian benchmark. The impact worldwide would be tremendous.
We forget what that kind of economy means. Clinton averaged roughly 4 percent GDP growth. Record budget surpluses. Record job growth. Real household incomes up across the board.
A skyrocketing stock market. Money in peoples’ pockets—for college, for retirement, for vacations.
Businesses booming. New ones starting. And the USA once again the engine pulling the world economy.Image may contain: 1 person, smiling, standing, suit and close-up
We’re a long way from that, for sure. And there are analysts who say the world’s economies are simply being boosted by all the easy money central banks pumped into them for years — and that’s a bubble that will burst.
But business types here disagree. And they give a lot of credit to Trump for the renewed strength and vigor they sense in the sinews of the global economy.
Deregulation is the first thing they mention. The cost of doing business has come down fast. That means margins will go up.
That’s why so many investors see American companies as such good bets.
And that’s all Trump. The tax cut is also—no surprise—hugely popular here.
It seems the old US corporate tax structure was operating as a kind of logjam in the world economy, freezing up the flow of money and distorting investment decisions.
The dam broke. Trump broke it. And now corporations are paying bonuses and boosting wages for American workers.
All that money is just now beginning to hit the economy. One example: J.P. Morgan says it will spend $20 billion over five years to raise hourly pay of its workers and open new branches in the U.S., as a direct result of the tax cut.
“I think it’s possible you’re going to hit 4 percent sometime this year,” CEO Jamie Dimon said here in Davos. “I promise you, we are going to be sitting here in a year and you all will be worrying about inflation and wages going too high.”
Needless to say, if the American economy is running at 4 percent growth later this year—Democrats can probably kiss goodbye to their dreams of a wave election sweeping them into power.Image may contain: 1 person, smiling, standing, suit and close-up
And if Trump and Congress pass a $1 trillion infrastructure bill that would pour more money into the US economy next year—2020 looks very different, too.
Trump may be benefiting from the hard work of the Obama administration and the Federal Reserve in recovering from the worst economic downturn in 80 years. But he is surely benefiting.
And it may be that he, like Ronald Reagan, is lucky in his timing in another, deeper way.
At the moment both men came to power, an economic paradigm had hit a dead end. For Reagan, the New Deal approach to the economy had faltered, growth had dried up, inflation raged, working-class Americans were struggling and beginning to give up hope.”
While the mainstream media will try and do anything to discredit President Trump the facts speak for themselves.
And the facts show that the economy is doing great, so great in fact that nobody has seen these types of results since Bill Clinton was in office. Nobody can change that or take it away from him.
The recent tax reform package that passed the House and Senate and that was signed into law will likely have an even greater impact on the economy. It will help to build upon the results that already exist.
Proving that Present Trump could be the greatest President of the economy in over thirty years.