Donald Trump Inherits a Booming American Economy

By Jonathan Soyka,
Money and Investing Writer
trump
It has been eight years since the mortgage crisis and subsequent collapse of the United States economy. Former President Barrack Obama has left the oval office, handing the keys to the kingdom over to American businessperson and entrepreneur Donald J. Trump.

The 45th president of the United States has wasted no time getting his executive agenda underway. Ruffling the feathers of Democrats and Republicans alike, President Trump has swiftly and abruptly enacted executive orders to fulfil the promises he made on the campaign trail.

One of these promises was to bring business back to America with a focus on financial reform. When former President Barrack Obama took office, he inherited the worst economy in living memory.

As President Trump begins his administration, what is the current state of the economy? Between all the promises, appointments and scrutiny, the President has not so quietly inherited a booming American Economy.

The day that American hit bottom was on March 9, 2009. In the wake of the mortgage crisis, the United States stock market had collapsed. The S&P500 had fallen from its 2007 October all-time intra-day high of 1,576.09 to 666.79.

With the American stock indexes depreciating more than half of their value, the Obama Administration responded with aggressive monetary policy. In the form of quantitative easing and issuing foreword guidance, the Federal Reserve significantly decreased interest rates in America facilitating an expedited recovery period.

Surging higher and higher the American stock indexes have responded positively to President Trump’s promises of financial reform, deregulation and tax cuts for business and the middle class.

Eight years after the mortgage crisis and financial meltdown, there is cause for optimism. The S&P500 is flirting with record highs as President Trump finishes his first full weeks in office.

Eclipsing the October 2007 highs, President Trump inherited an S&P500 index that was sitting at nearly 2,300.00. The growth of the American stock indexes over the past eight years is testimonial to the economic success of the Obama Administration.

However, this growth is just a glimpse at what lies ahead and represents the potential that the Trump Administration has to make a substantial effect on business in America. Along with lowering taxes, President Trump has already promised to roll back Dodd-Frank.

If President Trump can successfully reform and deregulate business while cutting taxes on small businesses and corporations America is going to witness these indexes clime to unimaginable heights.

While the American stock indexes are a strong indicator of economic strength, unemployment is just as fitting an indicator when comparing the promises of President Trump to the actions of former President Obama.

President Trump has stated that he would like to add 25 million jobs during his presidency. This number would surpass even Bill Clinton’s Administration, which added 22.9 million American jobs and would more than double President Obama’s Administration, which added 11.3 million jobs.

According to the Bureau of Labor Statistics in October of 2009, the unemployment rate reached 10.0 percent. In January of 2017, America starts the year by crushing expectations, adding 227,000 jobs compared with an estimate of 175,000.

The unemployment rate has fallen to 4.8 percent, down more than 50 percent from the October 2009 highs.

Finally, how has home building done since the financial bottoms of 2009? According to the U.S. Labor Bureau, new home starts fell to 554,000 in 2009, down from 2,068,300 in 2005.
Although housing starts have not completely rebounded, they are still showing promising signs of growth. In 2016 an estimated 1,166,400 housing units were started. This represents a 4.9 percent gain above the 2015 figure of 1,111,800.

As the controversial executive orders keep rolling out of the White House and congress continues to make a mockery of the American procedural system, it is clear that the Trump Administration is going to be exciting if nothing else.

With so much of the political landscape and agenda still up in the air, there is a certain sense of safety knowing that the U.S. stock markets and unemployment levels are both doing so well.

In the weeks and months to come the Trump Administration will continue to push though their controversial and scrutinized agenda.

Although the short-run may yield some bumps along the road, the future is trending way up for America. Good luck to President Donald J. Trump on making America great.

A version of this article appeared in the Tuesday, February 7th print edition.

Contact Jonathan at
jonathan.soyka@student.shu.edu

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