Economy Roars, Trump Critics Languish

(image via ang.af.mil.JPG)

(4 minute read)

By Rick Amato,

To hear the mainstream media describe it former U.S. president Barack Obama was an economic genius and savior deserving of great praise and gratitude by all American citizens.  So much so that to many in the media today’s economic growth occurring under the current Trump administration should be credited back to Barack Obama.  “He set the ball in motion” so goes the thinking- or at least so goes the narrative.
 
To be sure the Obama administration inherited an economy in recession when it took office in 2009 and managed to avoid a further eroding of the economy.  For that they deserve credit.  But let’s discuss what the media won’t.  The average annual economic growth during the Obama years was an anemic 1.48%.  And as pointed out here previously, Barack Obama is now the only president in U.S. history to never to have a year of 3% GDP growth.  Not one of the only, the only.
 
Which brings us to President Donald Trump.  While the media wants to focus on what Michael Cohen did or didn’t tell CNN and other fake news stories, there is an important developing story they have chosen to ignore.  The President is laying the groundwork for what can potentially result in some very robust long term job and economic growth for the U.S. economy.
 
The media has been quick to mock Donald Trump on his proposed use of tariffs against the EU, Mexico, China and Canada.  But they have failed to report that the threat of tariffs has been an early strategic success resulting in our trading partners agreeing to sit down at the negotiating table and work towards a more equitable relationship with zero tariffs on both sides.   Quite a development considering that the EU and others currently penalize U.S.    automakers with their own set of tariffs.
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For more detailed insight and analyses into the Trump administration’s economic game plan and its’ early results click below to watch my TV interview with economics professor and public policy analyst Dr. Michael Busler.
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Watch ‘Politics and Profits with Rick Amato’ on Roku, Amazon Fire TV,  Apple TV  and here at AmatoTalk.   And scheduled to soon to be on Dish TV and Direct TV.

 

Watch the video below:

The Truth About Trump’s Trade Tariffs

(image via wikimedia/http-//www.voanews.com/a/3731779.html/public domain/Trump_at_Florida_Rally)

(4 minute read)

By Rick Amato

A largely misunderstood and under reported story is that of Donald Trump’s use of tariffs as a tactic to grow American jobs and the economy. If the same strategy and early results had occurred during the Barack Obama years, the mainstream media would have labeled the former President a “brilliant, intelligent, global tactician”.  But as former CIA agent and Whistleblower Kevin Shipp recently said, ‘too often the mainstream media has an agenda that has little to do with real news’.

Which brings me back to the use of tariffs. If you listen to the news then you believe that Trump is either a racist (with the threat of tariffs against Mexico), colluding with Russia (threat of tariffs against the European Union) or simply unstable and volatile (in the case of Canada).  And just for good measure as a Capitalist who supports trade barriers, a hypocrite.  But the facts and early developments don’t support these agenda-driven narratives.

Let’s start with why so many free market economists who normally oppose trade barriers at all costs are now supporting Trump’s tariffs.  Their reasoning can be summed up in one word: Leverage.

While the initial reaction of countries who are the target of tariffs may be one of anger and defiance the fact is they have little or no leverage over America on the issue of trade.  Long term we hold all- or most- of the cards.

Consider this:
* The U.S. trade deficit with China is at a record high of $375 billion.
* U.S. trade deficit with the EU is $147 billion.
* U.S. trade deficit with Mexico is $63.6 billion.
* U.S trade deficit with Canada is $12.1 billion.

Unlike previous presidents from both parties who either didn’t know or didn’t care Trump understands that America has all the leverage it needs in the trading relationships with our partners.  What are they going to do? Buy less American goods?  They’re already doing a bang up job of that with their own use of high taxes and tariffs on U.S. made products.  Hence the trade deficits they now enjoy.

A growing number of free market economists concur that the tariffs with create short term pain but long term gain for the U.S. economy.  Surprisingly we are already beginning to see the early returns of the long term gains.  Example:

* While the EU response was initially one of anger, they have now backed-down and agreed to trade concessions in hopes of avoiding a trade war.

* Largely ignored by the U.S. media is the recent meeting between Mexico’s Secretary of Economy, (Mr. Ildefonso Guajardo) and Trump trade representatives last week in D.C.  Both countries emerged from the meeting upbeat and cautiously optimistic about our near term trade future.  So much so that President Trump declared a policy of ‘zero tariffs with Mexico’ was within reach.  Of course closely watching all of this is Canada the third leg of the stool in NAFTA.

China however is believed to be a longer term play with more strategic elements to consider given their aggressive economic and military global goals.  But once again their leverage options too are limited.

During the 2016 presidential campaign voters from both parties gave Donald Trump high marks on the issue of the economy and it looks like the President is about to prove them right.  But don’t expect too many in the media to take notice.

Click below to watch my TV interview with CNN Economic Analyst Stephen Moore on Trump’s trade tariffs and the most recent Jobs Report.

Watch ‘Politics and Profits with Rick Amato’ on Roku, Amazon Fire TV, Apple TV and of course here at AmatoTalk.  And soon to be on Dish TV and Direct TV,

Getting Your Side Hustle On: The Challenges of the Gig Economy

By Politics and Profits,

Joel Block, Bullseye Capital, Author: Stop Hustling Gigs and Start Building a Business and Rocky Romanella, Author: ‘Tighten the Lug Nuts: The Principles of Balanced Leadership’discuss the gig economy and the principles of leadership with Rick on Politics and Profits.

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Chicago Dem Says Rahm Emanuel Should Welcome Trump, Plus the Working Homeless in CA

By Politics and Profits,

Rick Amato talks to Illinois State Representative, La Shawn Ford on the violence in Chicago and that Rahm Emanuel should welcome Trump to the city. Plus, healthcare expert and Candidate for Palomar Health Board, Laurie Edwards-Tate discusses her campaign and the working homeless in California on Politics and Profits.

Watch the video below:

Trump to offer $12B in aid to farmers

Patrick Henry, CEO of QuestFusion, Author: Plan, Commit, Win: 90 Days to Creating a Fundable Startup discusses President Trump’s plan to offer 12B in aid to America’s farmers, plus Kip Kolson, President/CEO: Family Wealth Leadership, author: You Can Have it All-Wealth, Wisdom and Purpose discusses Trump’s decision to hold off on car tariffs with Rick Amato.