Remember when the financial news sources were reporting that a recession was imminent in the next 12 months?
Well, those doomsday predictions appear to be wrong.
If the Black Friday sales numbers are an indicator of a strong economy, then those prognosticators have been made to look like fools.
Apparently, a lot of us went wild on Black Friday. People’s personal finances appear to be strong, because Black Friday saw its highest grossing day ever.
Adobe Analytics reported that there were $7.4 Billion in transactions on Black Friday. Adobe also projects online sales to reach $9.4 Billion on Cyber Monday.
Not bad for an economy that is supposed to be barreling towards a recession.
The Hill reported that the top-selling products on Black Friday were “L.O.L. Surprise dolls, Frozen II toys, the FIFA 2020 video game, and the Nintendo Switch.”
So, where is that recession everyone was talking about?
Most economic indicators are NOT pointing to a recession.
Last month, CNBC reported that “economic data looks nothing like that of a recession…Key signals such as labor and credit trends remain quite healthy…the labor market is strong with the total labor force hitting a record high of 163.4 million, according to the Labor Department’s Jobs report.
Inflation and earnings quality are all expansionary indicators, according to Golub. Inflation is close to the Federal Reserves’ 2% target and in the second quarter, nearly 75% of S&P 500 companies that reported earnings so far beat analysts’ expectations.”
The economy has been strong for several years now. Unemployment has been at a 50-year low, wages have been rising, and GDP growth has been significantly higher than during the Obama years.
There are seven million job openings and America is on the verge of being a net exporter of energy, which once seemed unfathomable.
The media was clearly intending to build up the troubling economic signs to hurt President Trump in the court of public opinion. They know that he is going to be hard to defeat at the ballot box as long as the economy remains strong.
The stock market has been going gangbusters under Trump.
It seems like every week the stock market is hitting a new all-time high.
The S&P 500 has risen by 35% since President Trump was sworn in as president. Trump’s tax cuts for individual income earners and corporations have helped propel this gain as well as Trump’s efforts to cut-job killing regulations.
President Trump has cut more job-killing regulations than any president in modern American history. He has reversed the tide of the Obama years when regulations and proposed rules amounted to nearly 90,000 pages on the Federal Register by the time Obama left office.
The Council of Economic Advisers released a report showing the successes of the deregulation policies of the Trump administration.
The report said, “Before 2017, the regulatory norm was the perennial addition of new regulations. Between 2001 and 2016, the Federal government added an average of 53 economically significant regulations each year. During the Trump administration, the average has been only four. … Even if no old regulations.”
The report continued: “The effect, relative to a regulatory freeze, of removing 20 costly Federal regulations has been to increase real incomes by 1.3 percent. In total, this is 2.1 percent more income—about $3,100 per household per year—relative to the previous growth path.”
Enjoy your holiday shopping season. Times are good in America.