Despite his low levels of popularity stemming from his political style, it must be recognized that during the last 4 years, it is the first time the United States has registered a growth rate higher than 3% as reported in the second and third quarter of the presidency of Donald Trump.
Since the last crisis, The United States had gone for 11 consecutive years with a growth domestic product under 3 % and in 2016, it grew a paltry 1.6%. One of the most repeated promises Donald Trump made during his campaign was to stimulate the economy with a fiscal reform which would improve working conditions of the working class.
Among the most important issues included in the fiscal reform passed before the end of 2017 was the reduction of corporate taxes to 20%. Moreover, in the last 12 months, Americans have seen the unemployment rate drop. According to the numbers from the Dept. of the economy, there were 2 million new jobs created in 2017. 200 of which were located in the manufacturing sector that has been one of the milestones pushed by President Trump.
Large Media in USA reported during this year of 2018 that the macro-economic balance of the first year of the Trump administration shows incredible results, way above those achieved during the presidency of people like John F Kennedy (27%) and George W Bush (22.9%). During his first year in office, the republican candidate has managed to break away from the economic status quo at the White House and for which, all the other states in the union are enjoying a prosperous economic momentum. This surprising result of the GDP has found a strong backing by business in general and whose opinion about Trump’s presidency reaches 60%, This positive balance based on numbers and historic records, finds common ground on all economic analysts, friendly or otherwise to Trump. According to experts, the index “Standard & Poor’s 500” the broadest indicator of the Stock Market shows 61 historic highs and places at 21.3 % the profits for the first year of the Trump’s presidency.
These numbers break a record in terms of performance in the market during the same post electoral period of other occupants of the White House in the last 50 years like Ronald Reagan (-3.3%) Bill clinton (10.3%) and Barack Obama (4.1%). For Wall Street GuruS, the main factor that has made the market more dynamic has been corporate gains. “ The most important thing that has happened is that we have had good gains” said JJ Kinahan to the Associated Press. For this analyst, an expert in the market and boss to TD Ameritrade; “Companies are making a lot of money on the push by the market so ultimate gains have been good”
According to the behavior of the Stock Market, there is also evidence that the last few weeks, more than 400 companies from S&P 500 have reported historic highs that have gone above and beyond the predictions for the first year of this presidency. The future could not be more promising. Wall Street has doubled the expectations for growth during the first quarter to 6.8% according to S&P Global Market Intelligence. Experts at S&P maintain that it is enticing for investors that there be more companies turning a profit today than usual, as predicted by analysts. The price of stocks also provide signs of long term corporate gains and investors continue to bet on buying and selling stocks based on the positive economic growth of the United States.
According to the experts of Wall Street, the growth of the American economy has its origin in the number of steps implemented by the Trump administration set to modernize the market, streamline it and improve the rentability of companies such as the lowering of taxes which has lead to major corporate gains. In some polls, 61 % of investors believe the improvement in the economy has been caused by the high sale in stocks. They also admit that the economic stability and the employment rate have been the biggest achievements of the Trump administration. They concede that the toughening on immigration issues has reduced considerably the illegal entrance of people in the United States. The business sector believes that the Trump administration improved the economy for big corporations and this is confirmed by the trust of citizens in general. Just a year after his victory, consumer trust has reached the highest levels in 17 years.