The MAGAnomic Tri-fecta: Jobs growing; wages growing; inflation stable.
When President Trump and Commerce Secretary Wilbur Ross announced tariffs on Steel and Aluminum, in combination with Round #1 tariffs on imported Chinese products, the Wall Street financial media went bananas with dire predictions of inflation.
Today the Bureau of Labor and Statistics (BLS) released the August measure of inflation in consumer goods. Despite the doom-and-gloom predictions from the self-interested multinationals, the inflation rate is a low 0.2% the same result as July. Core inflation, which excludes volatile energy and food components, increased 0.1%.
[…] “Compared with a year ago, prices were up 2.7 percent, lower than the 2.9 percent gain in July and June. Core inflation was up 2.2 percent from a year earlier, down from 2.4 percent in July. This means the pace of inflation has slowed.”
The lower than expected rise in consumer prices was foreshadowed by the Labor Department’s report on producer prices and the Federal Reserve’s Beige Book Wednesday. Taken together, the reports indicate that fears that trade disputes and rising tariffs overstated. (more)
Supplemental to this low inflation index, the US weekly jobless claims dropped to near 49-year low. As CNBC was forced to admit: “The number of Americans filing for unemployment benefits unexpectedly fell last week.”
(CNBC) […] Initial claims for state unemployment benefits slipped 1,000 to a seasonally adjusted 204,000 for the week ended Sept. 8, the lowest level since December 1969, the Labor Department said on Thursday. Data for the prior week was revised to show 2,000 more applications received than previously reported.
Economists polled by Reuters had forecast claims rising to 210,000 in the latest week. The claims data covered last Monday’s Labor Day holiday. Claims tend to be volatile around public holidays.
The four-week moving average of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 2,000 last week to 208,000, also the lowest level since December 1969. (read more)
Additionally, nonfarm payrolls increased by 201,000 jobs in August and annual wage growth notching its biggest gain in more than nine years. Job openings hit an all-time high of 6.9 million in July.
Low inflation; expanding employment opportunity; low unemployment; and rising wages.
These measures all have a cumulative impact on paycheck-to-paycheck Americans. Prices for durable goods are stable and wage growth is exceeding inflation. That means more disposable income in the middle-class…. which, when combined with the increased pay from lower middle-class tax rates, is exactly the intended outcome of MAGAnomics.
This creates a situation where the U.S. consumer can fuel the the U.S. economy while President Trump, Secretary Ross, Secretary Mnuchin and Ambassador Robert Lighthizer utilize the leverage of tariffs, to negotiate better America-First trade deals.
President Trump’s economic policy cabinet is the most effective group of individuals every assembled in modern U.S. history; arguably in all of U.S. history. The economic policy plans are working exactly as projected; and, in combination with the domestic economic strength, this empowers President Trump’s international engagements with a stunning amount of influence and leverage.
Economic Security is National Security. We are seeing this multidimensional truth being carried out for the first time in our lifetimes, thanks to a blue-collar billionaire.
Part of the push-back against President Trump is due to the success within this doctrine for domestic and international success. Politicians and the political apparatus of the administrative state are apoplectic that a long-held economic curtain has been dropped by President Trump and his policy team.
It is this easy.
It is common sense.
We have not had the benefit of this economic success in the past 40 years because corrupt multinational interests were paying and bribing -via lobbyists- politicians and public officials within the administrative state to block independent U.S. wealth.