Obama Hands Trump a Growing US Economy, but Can He Keep It?
The latest report from the Department of Commerce shows that profits are up by 3.5% from the second quarter’s mark. This marks the 3rd consecutive increase which demonstrates the Obama administration’s legacy of continuing the economic rebound in America.
Since 2012, the US has not seen such a significant uptick in economic profits, proving that the current president was able to surpass expectations more rapidly and stronger across the spectrum of the economy.
Consumer spending has increased and the US dollar “rose to a session high against a basket of currencies.”
Russell Price, economist with American Enterprise Financial, said: “Growth is going to remain heavily reliant on the consumer, but consumers are in very good position to lead that charge. Overall, it’s an encouraging sign for the path ahead.”
The president elect is inheriting a better American economy than he has admitted is reality on the campaign trail. Back in April, Trump incorrectly claimed that the US is headed for a recession; to which he promised that he “can fix it pretty quickly”.
He also subscribes to an alt-right conspiracy rooted in anti-Semitism and surrounding the Federal Reserve, saying that they create a “false economy”.
Because of the president elect’s faint grasp on the reality of the US economy, the plan he laid out during his campaign could dampen the steady economic rise America has seen over the last 8 years.
Part of Trump’s scheme to “jump start” an already prosperous economy, is to interject offshore cash from foreign corporations by rearranging the current tax code, making it easier for America to resemble Panama as a solid place to incorporate a shell company.
An integral aspect of that plan is based on the assumption that this cash would flow in the US and be immediately invested in new infrastructure and other projects. But the massive funding necessary to assist the economy just is not there because “the majority of the money held overseas is in accounts belonging to a relative small number of U.S.-based businesses.”
But there is a built in problem with that assumption because corporations wanting to invest in the US economy can already do so “without needing to bring money back from abroad.”