THANKS TO TRUMP’S PRO-BUSINESS / PRO-WORKER ECONOMIC POLICIES …
Steve Moore, economist and author of Trumponomics, often says, “Small business is the spinal cord of our economy.”
(Source: American Thought Leaders)
Here are a few 2017 statistics to illustrate his point:
There are 30 million small businesses employing 60 million workers, equaling almost half of all employees in the United States. No doubt, small businesses play a critical role in the success of our economy and represent a substantial portion of the workforce.
So how are small businesses fairing under Trump?
Trump’s campaign promise to lower taxes and reduce regulations immediately turbo-boosted small business optimism after he won the presidential election in November 2016.
After Trump followed through on his promises, small business earnings have grown to record levels.
And as earnings have grown, small businesses have expanded and created millions of new jobs.
Trump’s lower tax rates and aggressive depreciation schedule changes encourage capital investment, which increases productivity and allows small businesses to hike labor compensation (wages) while maintaining relatively low price growth — good for both workers and consumers.
Equally important, a NY Times article on May 2, 2019 noted that recent wage gains are going to those who need it most.
“Over the past year, low-wage workers have experienced the fastest pay increases, a shift from earlier in the recovery, when wage growth was concentrated at the top.“
In summary, according to an April 2019 report on Small Business Optimism by the NFIB Research Foundation:
“The ‘real’ economy is doing very well; lots of jobs and GDP are being produced with no substantive pressure on prices. Investment spending has been in a solid zone, and productivity numbers suggest that we are beginning to reverse the negative effects of the huge decline in investment spending from 2009-2016 (during the Obama administration). Labor compensation is steadily growing around a 3 percent rate, while prices are increasing much more slowly.”
As Steve Moore is also fond of saying, “It’s no surprise that businesses and low-wage workers are doing better under President Trump (a former businessman who is pro-worker and pro-business) than under President Obama (a former community organizer who was pro-worker but anti-business.)”
Democrats generally like to take money from those who have it and give it to those who don’t. Republicans generally like to create free market conditions and opportunities for everyone to benefit. The 2020 election will be a referendum on which approach America prefers. If the economy, small businesses, and low-wage workers continue to thrive over the next year and a half, Trump will win re-election and Republicans may even take back the House.