Trump’s structural economic growth gives way to Biden’s slow motion train wreck

Contact Your Elected Officials

Biden reverses all Trump growth policies, from cancelled pipelines and terminated arms deals to waning defense budget

The Washington Times

Stagflation is characterized by slow economic growth and relatively high unemployment—or economic stagnation—which is at the same time accompanied by rising prices (i.e. inflation). Stagflation can also be alternatively defined as a period of inflation combined with a decline in gross domestic product (GDP).

The American economy is headed for stagflation as surely as Joe Biden’s Robin Hood Keynesianism has followed Donald Trump’s structural growth compass into the White House. Here, history is instructive.

The day after the 2016 U.S. presidential election, I appeared on CNBC with the futures dead red down and confidently predicted strong growth and 25,000 on the Dow. To stimulate GDP growth, the Trump administration would hit four points of the policy compass: tax cuts, deregulation, cheap energy and rebalanced trade.

We quickly added higher defense spending and increased international arms sales to the Trump structural growth drivers. These six drivers would deliver real GDP growth consistently above projections — and yes, we easily blew past 25,000 on the Dow.

Today, the Biden administration is reversing all Trump growth policies — from cancelled pipelines and terminated arms deals to a waning defense budget. With more Keynesian stimulus on the way, taxes will go up directly through legislation or indirectly through inflation.  

In normal times, this Trump-to-Biden transition would simply mean a reversion to the old Obama-Biden administration mean of sub-2% growth and stagnant real wages.  It is with the complications of the pandemic where the “flation” part of stagflation rears its ugly head.

The pandemic from China has struck at the three main pillars of urban prosperity around the world — high-rise office buildings, mass transit, and hospitality and entertainment. The result: A vast army of unemployed service sector refugees.

Pandemic flight to the suburbs has also made American cities like New York and Chicago more vulnerable to violence. “Defund the police” movements have exacerbated skyrocketing urban crime rates. 

The essence of high structural unemployment in this pandemic-fueled urban decay is the spectacle of millions of unemployed Americans without the skills to fill millions of job openings. Expect wage inflation in select sectors. Paradoxically, expect real wages to fall in the aggregate under the weight of service sector refugees, open border policies, and slower Bidenomics growth.

By Peter Navarro

Read Full Article on The Washington Times

The Thinking Conservative
The Thinking Conservativehttps://www.thethinkingconservative.com/
The goal of THE THINKING CONSERVATIVE is to help us educate ourselves on conservative topics of importance to our freedom and our pursuit of happiness. We do this by sharing conservative opinions on all kinds of subjects, from all types of people, and all kinds of media, in a way that will challenge our perceptions and help us to make educated choices.

Democrats are Losing by Pushing Their Dirty CR Bill

Talk is going around about the “Democrats Dirty CR” and the “Republicans Clean CR”.

NCAA streamlines transfer portal

The NCAA lords of the Division I Administrative Committee have unveiled a fresh batch of transfer portal reforms.

Section 230 Immunity, Defective Design and Trial Lawyers (Part 2)

Congress granted social media platforms Section 230 immunity even when children are harmed, trial lawyers found a way to bypass protection.

A Tale Of Two Political Parties

While the GOP, led by Trump, has produced results, Democrats offer horrible policies and candidates, presenting a vivid contrast to the American people. 

The Case for Western Islam

The suggestion of a expression of Islam which emerges from western culture is one that comes from a place of love.

Democrats are Losing by Pushing Their Dirty CR Bill

Talk is going around about the “Democrats Dirty CR” and the “Republicans Clean CR”.

Biden Undergoing Radiation, Hormone Treatment for Prostate Cancer

Former President Biden has begun receiving a combination of radiation and hormone treatments for prostate cancer, spokesperson announced.

Homan Says DOJ Probing Funding Behind ‘Organized’ Attacks on ICE

Border czar, Homan said DOJ launched an investigation into funding for what he called “organized” attacks on federal immigration enforcement agents.

There Are No Survivors in the Blast at a Tennessee Explosives Factory, Sheriff Says

The blast in rural Tennessee that leveled an explosives plant and was felt for miles around left no survivors, authorities said Saturday

Trump Names Longtime Adviser Dan Scavino to Key Personnel Position

One of President Trump’s longtime advisers, Dan Scavino, is going to be in charge of selecting and appointing key positions within the executive branch.

First Lady’s Effort Helped Reunite 8 War-Displaced Children With Their Families

First lady Melania Trump said 8 children impacted by the fighting between Ukraine and Russia were reunited with their families on Oct. 9.

Trump to Impose New 100 Percent Tariff on China on Nov. 1

President Trump said that the US will impose an additional 100 percent tariffs on Chinese goods and export controls on critical software starting on Nov. 1.

Trump Admin Agrees to $20 Billion Rescue Plan for Argentina

The U.S. government has finalized a $20 billion economic rescue plan for Argentina, Treasury Secretary Scott Bessent announced on Oct. 9.
spot_img

Related Articles

Popular Categories

MAGA Business Central