Hopes of ‘Trump Bump’ Shrink

For months, President Trump has tweeted and selectively touted jobs numbers and other economic news that reflected well on his Administration. But the New York Times’ Hopes of ‘Trump Bump’ for U.S. Economy Shrink as Growth Forecasts Fade paints a much more complex picture of the American economy in recovery. While Trump promised jobs and economic growth, stagnant numbers in wage growth and consumer confidence show he’s failing to deliver a ‘Trump Bump’ fix for the American economy. Highlights (or lowlights) here:

“While the June jobs report, coming on Friday, is expected to show that hiring continued at a healthy pace last month, other recent indicators in areas like consumer spending, construction and auto sales have been decidedly less robust.”

“… Wall Street forecasters have been busy lowering their growth estimates for the second quarter, which ended last Friday, much as they were forced to do over the first three months of the year. Economic expansion for the full year now appears unlikely to be much greater than 2 percent — about the average for the current recovery...”

“The indicators that Mr. Trump highlighted in recent messages on Twitter are indeed pointing in the right direction — strong job creation, a record high for the Dow Jones industrial average and low gasoline prices. But so far, the economy’s basic trajectory remains the same as it did under President Barack Obama.”

“Experts say that without a meaningful change in government policies — greater infrastructure investment, an overhaul of the corporate tax code, a new commitment to improve the skills of American workers — there is no reason to expect the domestic outlook to change.”

“’Despite lip service about the ‘new normal,’ economists continue to forecast growth of 3 to 3.5 percent,’ Ms. Pomboy said. ‘We’re eight years into the recovery — that’s not when things accelerate. It’s when they die.’”