Trump bump? To a large degree yes.
Obviously Trump has his issues – to say the least – but the uptick in the ersatz economy (the one that most of us live in until reality inevitably hits and overwhelms the fakery) is about American optimism inspired to some degree by Trump, but as much as anything by relief that Obama is adios. The people who make things, who grow the economy had little confidence in Obama. The media had confidence, academia had confidence, the government employees of various sorts had confidence. But the people who get up and MAKE things? Well, for a great many of them confidence in Obama was lacking. In fact for many people it felt like Obama was working AGAINST a robust private sector.
“You didn’t build that!”
That the president of the United States would utter such drivel showed to many the level of contempt for business, and let’s be frank, just flat out ignorance that defined (and likely still defines) Obama’s worldview. His is a big government, government-centric, bureaucrat-centric, chip on his shoulder because others succeeded in the private sector without the help he got at every step in his non-private sector career, worldview.
And Americans who had built their businesses, people who knew how clueless the president was on economic matters basically wrote the guy off.
For me the “you didn’t build that” clip is one of the most disgusting I’ve seen from any president ever. (And that’s saying something.) Watch the video. He honestly believes what he’s saying. But anyone who has built a business knows how stupid Obama sounds here. Anyone. I wonder why the economy never hit 3% growth in his tenure? (The only president ever for which this is true.)
I know that when Trump was elected many people were filled with shock and then hit by a sense of dread. The Obamaworld came crashing down violently, and many people liked the Obama era. But for others there was a profound sense of relief. There was a sense that even with Mr. Bull in the China Shop at the helm at least the country could get back to doing what it is good at doing – playing offense. (Not that defense should be overlooked. I loved playing defense when I played football.)
Of course there are a million caveats one could add. Of course there are a million reasons for caution. Of course Trump could tweet out something even more ham handed tomorrow. Of course, and of course. But generally, there is a spring to the American step that was lost during the Obama years. In spite of all the insanity surrounding the White House there is a spring. And that, it strikes me, is deeply American.
America wants to build businesses again.
(From The Wall Street Journal)
The second-quarter profit gains are spread across industries from Wall Street banks to Detroit’s car factories to Silicon Valley’s software labs. Earnings are expected to decline only in the utilities sector, according to data from Thomson Reuters.
Several factors are at work, analysts and economists say. A weaker dollar has made it easier to sell U.S.-made goods overseas and has kept borrowing costs low. U.S. wages have improved enough to help bolster consumer spending without raising employer labor costs so much to dent the bottom line.
Companies also continue to reap the fruits of their recent zeal for cutting costs, Mr. Probyn said. “We underestimated some of the cost-cutting and restructuring that has gone on within the various industries; that has permitted earnings to keep doing well.”
Sales, too, rose in the quarter, by an expected 5%, the second-biggest increase in more than five years, according to data from Thomson Reuters.