Like most things these days, Libs refuse to acknowledge that the booming “Trump economy” exists. Invariably any lauding of Trump’s economic or stock market successes elicits the response that Trump has benefitted from Obama’s head start. Is his true? Has Trump been piggybacking on the Obama recovery? Opinions vary ... but here are the facts:
Dow Jones Industrial Average
Day Obama Elected — 9323
Day Trump Elected — 17,888
Day Obama Inaugurated — 7550
Day Trump Inaugurated — 19,827
Today. 29,423
Percentage Increases
Trump Election Day till now — 64.5% (over 3+ years)
Obama Election Day till Trump Election Day — 91.9% (over 8 years)
Clearly, so far Trump is ahead (assuming his recovery continues ... which, given the coronavirus outbreak, may be in jeopardy.) Comparing these stock market records deserves acknowledgement of some contributing and detracting factors:
- Obama benefitted from the Fed injecting $3.7 trillion into the money supply and reducing interest rates to near zero. (monetary stimulus)
- Obama benefitted from $10 trillion of deficit spending (front-end loaded fiscal stimulus)
- Trump has also deficit spent about $3 trillion (much used to rebuild the military)
- Trump has had the Fed
reduce the money supply by about $400 billion
- The Fed has
increased interest rates by 1.5 percentage points under Trump
- Trumps has increased GDP growth by about one percentage point and reduced unemployment rates by about 1.2 percentage points despite substantial headwinds from his trade wars with China, Canada and Mexico. He has also expanded average worker’s salaries to over 3% annually. and, finally, started the employment participation rate growing again.
We report. you decide.
Afterwards: Interestingly, the DJIA peak under Bush was 14,000 ... right before the Barney Frank induced sub-prime mortgage crisis. Counting from this high, Obama only experienced the stock market expanding by 28.8%.
