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February 7, 2020

Stellar Jobs Report Feeds Economic Optimism

Americans are more hopeful for their personal finances than ever, and for good reason.

“Jobs are booming, incomes are soaring, poverty is plummeting, crime is falling, confidence is surging, and our country is thriving and highly respected again,” President Donald Trump declared in his State of the Union Address. “Our economy is the best it has ever been.”

That last bit of typical Trumpian hyperbole may have provoked Trump-deranged Leftmedia “fact checks,” but most Americans are indeed brimming with optimism. Given that the recession of 2008 was a crisis of confidence, the confidence Trump exudes and the American people feel portends good things to come.

How optimistic are we? Gallup’s poll on personal finances finds two key things: “59% in U.S. say they are now better off financially than last year,” and “74% say they will be better off financially in a year.” That latter number is the highest in Gallup history.

That confidence is well-founded, reports The Wall Street Journal’s James Freeman: “The good news for job seekers … is that recession is nowhere in sight. … Demand for labor is so strong that the significant constraint on economic growth is a lack of workers.”

And speaking of workers, the January jobs report was excellent. “An unseasonably mild January helped power the U.S. jobs market to more gains, with nonfarm payrolls rising 225,000 for the month, well above Wall Street estimates,” CNBC reports. “The unemployment rate ticked higher to 3.6%, but for the right reason as the labor force participation rate increased 0.2 percentage points to 63.4%.” Wages have been rising 3% or more for 18 straight months.

So, while we can apparently give some credit to global warming for the “unseasonably mild January,” the real reason for the continued economic growth is the Trump administration’s policies of low taxes and deregulation.

The current consumer and business confidence levels notwithstanding, don’t underestimate the Democrats’ desire to foment recession fears between now and the November election.

As Mark Alexander declared this week, “While President Trump made clear Tuesday that the State of the Union is strong, the success of this administration deeply concerns Democrat Party leaders Rep. Nancy Pelosi and Sen. Charles Schumer — because Trump administration success on behalf of the American people threatens the Pelosi/Schumer political dynasty.”

Two years ago in his column, “Will Democrats Get the Pre-Election Recession They Want?” Alexander noted, “Democrats are willing to trample grassroots Americans — the ‘Forgotten Man,’ including many of their own constituents — in their relentless pursuit of power… These partisans loathe blue-collar Trump supporters.”

Nevertheless, the great optimism with which Trump concluded his SOTU is still on the ballot in November.

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