The Bureau of Economic Analysis (BEA) releases the GDP data for the second quarter (Q2) and it shows a 3.0% jump in economic growth. While many mainstream economists are saying that this was unexpected, that just shows the lack of economic understanding within Big Media.
This was an entirely predictable result. Why? Because imports are a deduction to GDP. Imports dropped 30% in the 2nd quarter. Why? Because there was a surge of imported goods in the 1st quarter by companies trying to avoid impending tariffs.
None of this should have been a surprise to economists who understand economies and how they work. Of course, many of these soothsayers are in the employ of those who do not want America to succeed. Remember there are trillions at stake.
From MSN:
Recession? What recession? The US economy bucked nonstop doom-and-gloom by economists — including some at Wall Street’s biggest banks — and reported stronger-than-expected growth in the second quarter, marked by a surge in hiring and wages.
Gross domestic product – the value of all goods and services produced across the US economy – jumped by a seasonally and inflation adjusted 3% in the second quarter, the Commerce Department said Wednesday.
…
Annual wages spiked 4.4% — well above the rate of inflation, which has remained below 3% despite harping that President Trump’s tariffs would jack up prices.
“Our hiring and pay data are broadly indicative of a healthy economy,” Nela Richardson, ADP’s chief economist, said.
“Employers have grown more optimistic that consumers, the backbone of the economy, will remain resilient.”
In fact, the wage increases of 4.4% was more than double the rate of inflation at 2.1%. Let’s be reminded that the Fed’s target inflation rate is 2%. The wages increase means that people are growing their incomes twice as fast as prices are going up. So, real wage growth has returned. This is what happened during Trump’s first term in office. Of course, the media is not allowed to report this information this way.
In 6 months, PDJT has done more for American workers than any president in 100 years. BTW an interesting sidelight on all of these numbers is that US auto production has increased by 36%. And this has come as some automakers are shuttering EV production lines.
And the effects of the BBB have yet to be felt. Keep in mind that capital expenses can be expensed. That was a change brought about by the passage of the BBB. This should lead to more expansion of jobs particularly as money pours in from overseas to build plants here.
Winning! I am not yet tired of winning.