According to a new analysis from Reuters, American companies recorded by the S&P 500 are on their way to posting two consecutive quarters of double-digit profit growth, the first time they’ve done so since 2011. Among the factors contributing to the rise: Cost-cutting, a weakening dollar, and an improvement in consumer spending.
But one cannot look at the hard figures and come away with any other conclusion that by putting a pro-business president in the White House for the first time since (at least) 2007, we have stimulated the American economy in ways that may not even be fully evident for some time to come.
That said, many of the country’s top CEOs are concerned with the gridlock in Washington that has hindered the Trump agenda and prevented his economic boom plan from coming fully to life. With the failure of healthcare reform and the uncertainty of the next item on the Republican agenda – tax reform – many investors are worried that the current state of growth will not be sustainable heading into the year’s third quarter.
Overall, the U.S. economy accelerated growth in the spring, expanding to a 2.6% annual rate in April through June. That’s a remarkable uptick from where we were under the Obama administration, but it’s still short of the lofty promises made by Donald Trump on the campaign trail. Without the tax cuts and regulatory relief that Trump wants to implement, it’s not clear if Washington will be able to give American businesses the boost they need to send sustained growth into the 4% range.
“Consumers continue to drive the economy’s growth, but firmer business investment is also a plus,” said Mark Zandi, chief economist at Moody’s Analytics, told CBS News. “Weaker housing construction was the only significant drag on growth in the quarter.”
The media has no choice but to mention the positive news on the economy, but they’re doing their damned best to either downplay the president’s role in that news, stifle it with endless White House drama speculation, or give the credit – laughably – to his predecessor. Two of the biggest economic stories of the past week – Foxconn’s $10 billion investment in a Wisconsin plant and the record high Dow Jones Industrial Average – were given short shrift by the networks last week as they spent the majority of their broadcasts focused on Trump’s transgender military ban and his ongoing criticism of Jeff Sessions.
But that’s fine. It’s to be expected. These economic advancements don’t need to be touted through NBC Nightly News; the American people will feel it in their paychecks and on the store shelves. That’s all they’ll need to know when they decide whether or not to vote for Democrats next November.