That’s right, business is booming. Who do you think creates jobs? That’s a serious question. The answer is not consumer spending, which is what 99% of overeducated economists and media types will tell you. It’s business that creates jobs. And by the way, jobs are booming.172,000 in May. Last three months 188,000 average. April and March revised up 93,000. All these results are twice as much as predicted, but the point I want to make is that jobs are not created from thin air. They are created by profitable moneymaking businesses, large or small.
And the important part about Trumpian economic policy is that as a former businessman, he knows how the American economic engine really works. So he has given business significant supply-side tax relief for 100% depreciation, and dropping the corporate tax, and low small business taxes. And that bet is paying off big time.
And here’s another key point. Even with the Iran war temporary bump up of inflation, wages are still beating prices. For all workers over the past year, average hourly earnings are up 3.4% and aggregate hours worked up 0.9%. You must add them together to get total wage income compensation – most economists and journalists don’t, so they are wrong – but that gives you 4.3% wage income and that is still higher than the temporarily inflated 3.8% CPI. The unemployment rate is 4.3%.
Over the past year, foreign-born workers have dropped over 100,000, while native-born jobs have jumped almost 400,000. There’s no A.I. job loss effect thus far.
But let me circle back to the importance of business. You have to have a healthy, profitable business in order to have the resources to hire more workers and pay better wages and salaries. If you’re losing money, you’re going to lay off workers and shrink pay.
So profits, which are the mothers milk of stocks and the lifeblood of the economy, are absolutely crucial. Macroeconomists, especially from northeastern and bicoastal universities do not seem to understand this. And their graduates in the media do not understand this. Profits are the key, they’re not a dirty word. So when President Trump eased the tax on profits in the one big beautiful bill, he knew what he was doing. He was creating jobs at higher wages.
And then follow the real economic logic, a successful moneymaking, profitable business hires more workers, pays better wages, and those wages are the incomes of working families sitting around the kitchen table. And that turns into what’s called consumer spending.
But the business comes first and then the logic passes all the way through to so-called consumer spending. People don’t seem to understand that, but this is how our free enterprise economy works. As the late Jack Kemp used to say, the trouble with Democrats is that they like jobs, they just don’t like the business that creates jobs.
Now there were plenty of tax cuts on individuals: tips, overtime, social security, seniors, all in one, big, beautiful bill.
And here’s a final point on profits, they are booming. And because they’re booming, and because business is booming, wages are gonna skyrocket and the economy is going to grow faster than almost anyone thinks possible. If only republicans would talk about this for the midterms.
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