MAGAnomics Second Quarter Wage Rate Growth 2.8% – Red, White and Blue Collar Growth Well Over 3%

For more than three decades all U.S. economic policy was elevating Wall Street and diminishing Main Street. As a result the middle America blue-collar workers have not had wage gains keeping up with inflation for over 30 years…. Then came the era of Trump.

– “Walking in a Winner Wonderland” –

More than two years ago CTH began discussing the ramifications to a new emphasis on the economy outlined as a possibility of candidate Donald Trump’s economic policy outlook. Within the overall discussion we walked through the anticipated changes possible if A.) Trump won the election, and B.) Trump began instituting Main Street economic policy ahead of Wall Street policy (the past 30+ years).

We discussed the new dimension that would occur between two economic engines (Main Street -vs- Wall Street) as three decades of policy shifted. CTH outlined statistical and measurable KPIs that would become visible in the space between the policy shifts.

Part of those discussions focused on energy costs, product costs (we explained how inflation would be weird), and importantly, wage rates. It takes several months of policy emphasis (actual outcomes), before the labor market wage rates would grow. We anticipated seeing that impact in Q2 of 2018, which is April-June 2018.  Well:

The Bureau of Labor Statistics has just released their second quarter analysis of wage and benefit rates for American workers. –SEE HERE–  This is only the beginning of what is to come:

(pdf link)

Overall wage rate growth in Q2 now at 2.8% year-over-year.  That is great news. However, the better news is the red emphasis, White and Blue Collar middle-class wage rate growth is well over 3%.  The wage growth is broad-based amid almost all sectors.  [Trucking and transportation at 3.4% (Table 8)]

As the wage rate increases, and as the economy expands, the governmental dependency model is reshaped and simultaneously receipts to the U.S. treasury improve.

More money into the U.S Treasury and less dependence on welfare/social service programs have a combined exponential impact. You gain a dollar, and have no need to spend a dollar – the saved sum is doubled. That is how the SSI and safety net programs are saved under President Trump.

When you elevate your economic thinking you begin to see that all of the “entitlements” or expenditures become more affordable with an economy that is fully functional.

As the GDP of the U.S. expands, so does our ability to meet the growing need of the retiring U.S. worker. We stop thinking about how to best divide a limited economic pie, and begin thinking about how many more economic pies we can create.

The economic models of the entire last generation+ are based on the assumptions of continuing globalist economics which advances, and has advanced, the interest of Wall Street over Main Street.  They were driving a “service-driven economy” message.

The investing class economy, ie. another name for a ‘service-driven economy’, has been the only source of historic reference for approximately three decades. These talking heads convinced themselves that a “service driven economy” was the ONLY economy ever possible for the U.S. in the future.

Back in January 2017 Deutsche Bank began thinking about it, applying new models, trying to conceptualize and quantify MAGAnomics, and trying to walk out the potential ramifications.  They began talking about Trump doubling the U.S. GDP growth rate when all U.S. investment groups couldn’t yet fathom the possibility.

It’s like waking up on Christmas morning every day to see the pontificating Fed struggling to quantify analysis of their surrounding reality based on flawed assumptions. They simply have no understanding of what happens within the new dimension.

Monetary policy, Fed control over the economy, is disconnected and will stay that way for approximately another 12-14 months, until Main Street regains full operational strength –and– economic parity is achieved.

As we have continued to share, CTH believes the paycheck-to-paycheck working middle-class are going to see a considerable rise in wages and standard of living.  How high can wages rise?… that depends on the pressure; and right now the pressure is massive.  I’m not going to dismiss the possibility we could see double digit increases in year-over-year wage growth in multiple economic sectors in several regions of the U.S.

Remember, as wages and benefits increase – millions of people are coming back into the labor market to take advantage of the income opportunities.  The statistics on the invisible workforce varies, but there are millions of people taking on new jobs in this economy and the participation rate is growing.

Winnamins.  We’ll need lots of them…

Forget minimum wage laws, they are inconsequential conversations when measured against the reality of how quickly wages rise in a free, fair, unregulated and growing economy.

Seriously, with full measure of optimism and appreciation – and tears of thankfulness that we are alive to experience it – these are exceptional times.

“To winfinity and beyond” !!

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This entry was posted in Big Government, Donald Trump, Economy, Election 2018, NAFTA, President Trump, Uncategorized. Bookmark the permalink.

75 Responses to MAGAnomics Second Quarter Wage Rate Growth 2.8% – Red, White and Blue Collar Growth Well Over 3%

  1. starfcker says:

    And how is our president achieving these fine results? I think Sundance nailed it a long time ago, he’s doing something that I hear Jim Jordan articulate quite often nowadays. Why don’t we do what we told the people we were going to do? Here’s a pretty good article on another little secret of his success. Patriotism. https://www.americanthinker.com/

    Liked by 21 people

  2. FL_GUY says:

    President Trump has given us a New Emancipation Proclamation: President Trump has freed We the People from the slavery of poverty and lack of opportunity….

    Liked by 11 people

    • fleporeblog says:

      Your absolutely right! The Economy is taking off and there is absolutely nothing that the Left, MSM, Democrats, RINOs, CoC, Koch Brothers, Globalist etc. can do about it. The 3rd Quarter real GDP rate may be a whole point higher than the 4.1% in the 2nd Quarter.

      Liked by 6 people

  3. deepdivemaga says:

    How lucky are we? When will the general public see the light? I pray soon.

    Liked by 5 people

    • fleporeblog says:

      They are ABSOLUTELY seeing it!

      Liked by 7 people

      • The Boss says:

        Based on this plus his approval among republicans, President Trump’s true approval rating (excluding ANY dems) is around 60%. Quinnipiac polling can suck an egg. They’ve become whores.

        Liked by 5 people

        • GB Bari says:

          Quinnipiac pollsters always were whores for the Left/Dimms, at least for as long as I ever was aware of them and that’s been for many years.

          Like

    • fleporeblog says:

      Even the WHORES in the MSM are realizing their is nothing they can do to stop our President!

      Liked by 5 people

  4. patsfaninpittsburgh says:

    Wages will explode when gender studies barristas become truck drivers.

    Liked by 12 people

  5. sundance says:

    Liked by 18 people

    • TwoLaine says:

      This is really gonna’ depress a lot of the media. They were gloating all weekend that his MOST EXCELLENT GDP # was unsustainable, and that he’s had plenty of time to get wage growth moving, and he hasn’t.

      OOPS! 😉

      Liked by 4 people

      • keeler says:

        “It took 9 years, but the Obama stimulus is finally kicking in”
        “Obama economic policies finally paying off”
        “Despite trade wars, Obama economy paying dividends at last”
        “Obama policies mature at just the right moment”
        “Obama economic policies bouying middle class”

        Liked by 4 people

    • NJF says:

      And yet the talking heads keep saying “but wages aren’t growing!”

      Liked by 3 people

  6. permiejack says:

    Thanks SD. Couple the wage increases with lower taxes and a doubled standard deduction and doubled child tax credit on next years returns and you have big Winning,

    Liked by 2 people

  7. Ditch Mitch says:

    That magic wand is MAGA!

    Numbers show goods producing and sales got the highest wages. That is Americans are making and buying what they make. Thanks for the back data SD.

    Like

  8. Garrison Hall says:

    My local libtard paper has a headline that reads “Tax Cuts Aid The Rich”. Well, duuhh. Thanks to tax cuts we now have a rapidly expanding economy as all that tax-cut money flows into economic expansion. Where do liberal/progressives think all those “help wanted” signs come from? When rich people get money from tax-cuts they invest it. When poor-people get money from tax-cuts they spend it on beer and cigarettes.

    Liked by 3 people

    • nimrodman says:

      … and that’d be “jazz” cigarettes, in many cases
      just sayin’

      Liked by 1 person

    • starfcker says:

      Right, and if tax cuts are aiding the rich, fine. As long as wages for working people continue to grow, and their tax burden is reduced, who’s doing all the complaining? Most Americans want to see a prosperous country. Most Americans understand that if you work, you are totally reliant on somebody of a higher economic status than you to pay you every week. That’s the bargain. I’ll figure it out, you show up and work, I cut you a check on Friday. And the bigger that check is, the happier you are.

      Liked by 3 people

    • WSB says:

      Never got a job from a poorer person than me.

      Like

  9. intercesser says:

    It is really interesting to compare Presidents Carter and Reagan , And then Obama and Trump . Carter was just incompetent , while Obama is destructive . Cater ended up doing the devil many favors because of Carter’s own willful blindness , but Obama has chosen evil on purpose . Although , to be fair , Obama was also blind and incompetent .

    Liked by 2 people

    • pyromancer76 says:

      Oh, don’t bother to be fair with 0. He was programmed for destruction from birth. He was purposeful as much as he could be. We can thank God that he also was a no-resume incompetent. Neverthless, with all the “help” he had, he came very close to getting his heart’s desire – the demise of the U.S. My how happy he was to work with Russia and China and Iran.

      Liked by 1 person

    • Your Tour Guide says:

      Jimmuh is a much meaner person then people know. Has quite
      the little viscious streak. Had a whole town tore down in Clayton
      County, out by the airport to make room for more runways. Because
      him and the mayor had a pissing match going. And Jimmuh won.
      Big. And,,,,, the runways weren’t built where the town used to be.

      Worked with a guy that had been on said town’s police force. He
      gave YTG the skinny on the whole process. Town was Mountain
      View, Mountain Park….. Anyway, it’s gone. Sicced the FAA on ’em.

      Liked by 1 person

  10. TwoLaine says:

    My grandson’s favorite. LOVE IT!

    “To winfinity and beyond” !!

    Liked by 5 people

  11. NJF says:

    Ha ha that graphic.

    What a time to be alive!

    Liked by 6 people

  12. magatrump says:

    But but but WAGES are not growing shouted the Obama sycophants time and time again about the Trump economy. WELL NOW WAGES ARE GROWING!!!!!! Take that you POS morons.

    Liked by 3 people

  13. keeler says:

    While I was driving around southeastern Massachusetts yesterday I noticed something:

    Help Wanted
    Now Hiring
    Help Wanted
    Now Hiring
    Now Hiring
    Help Wanted
    Help Wanted

    Signs were everywhere! Now granted, this was during peak economic activity in a seasonal area… but that is where the even better part comes into play. In the spring the “local” paper [a regional owned by one of the big national paper networks] was whinging and whining about the decrease in H1B visa workers and the impact that decrease was bound to have on the summer season.

    Less foreign workers, more jobs, better wages. Sounds MAGA to me.

    Liked by 4 people

    • MILupper says:

      Our neighbor’s daughter, 17 years old, went for her first job interview with a retail store. Her dad dropped her off 5 minutes before the scheduled time. He was leaving the parking lot to fill the car with gas across the street. Before he got out of the lot daughter called him and said she got the job. He turned around and picked her up. The manager said she showed up on time for the interview so she was hired. Be there the next Monday at 9:00 am. Took less than 1 minute. That was it.

      Liked by 5 people

      • GB Bari says:

        Make sure the neighbors daughter does not lose the glaring fact of her hiring – that she showed up on time.

        Too many young people today take that far too lightly and think that waltzing in 1,2,5 or 10 minutes late should be ok because of “traffic” or “weather.” I tell my granddaughter – who is one of those “just in time” young adults – “LEAVE EARLIER!”
        One of these days she’ll figure it out.

        Liked by 1 person

        • WSB says:

          Fifteen minutes prior. Make sure your tie, hair, teeth, makeup, breath, and/ or notebook with pen are ready. Remember the umbrella if the weather looks bad. Business cards, and calm down, check dry hands before getting out of your transportation resource and entering the meeting location.

          I am over my first half generation, and just went through these steps on Monday.

          Best of Luck, everyone!

          Like

  14. redredrice says:

    Promises made, promises kept!

    Liked by 2 people

  15. Janice says:

    My heart is filled with love and gratitude that I have been alive to see this fundamental change in my beloved USA! MAGA!

    Liked by 3 people

  16. Bryan Alexander says:

    Sundance, the Chamber of Commerce “Open Borders” crows will not let this stand. They will have to pay out billions in higher wages.

    They will fight back in the United States Senate. Count on it.

    Liked by 1 person

  17. Pingback: President Trump Delivers Remarks on Vocational Workforce Development- Watch Livestream – IOTW Report

  18. rmramerica says:

    The thoughts outlined on the expanding economy are spot on and the results from “service driven” to “manufacturing” economies – and their impact on our lives – will be exponentially great. 70% of the US economy is middle market and main street i.e., those that haven’t participated until now. The only beneficiaries over the last 30 years have been multinationals who have the capability to expand into a global market and utilize a fungible, international labor market to their benefit and to the destruction of the “main street” economies. Just keep in mind, we have grown (despite the Fed’s heavy hand on US capital markets benefiting large corporations) with only 30% of our economy (“Wall Street”) working. Wait until the real drivers of the economy, the 70% of “main street” businesses kick in. The up-side is far greater then the babbling heads on CNBC and Fox Business think. The next wave in the markets will be amazing. It will finally be driven by both domestic and international market forces simultaneously. A total US business resurgence – “Main Street” and “Wall Street”. Trump has unleashed a sleeping economic monster. Winning American style!

    Liked by 1 person

  19. Doug says:

    at some point the unemployment rate will rise or stagnate because of all the jobseekers coming back into the market… ive always thougt the labor participation rate to be much more important number than unemployment rate .. and i hope trump pushes that and total number of working americans every chance he gets .. obamas unemployment rate and to some extent even bushs was
    a bit of a lie since its always finessed by jobseekers falling off the unemployment rate metric

    Liked by 1 person

    • Ozzytrumpster says:

      What’s really good is that people who’d given up are now being offered jobs. Young kids with no experience, older worker who’d been thrown on the scrap heap, ex prisoners, the disabled are all getting a chance. Really good to see.

      Liked by 1 person

      • Your Tour Guide says:

        The best….. we’ll start seeing high school kids working behind the counters,
        before college. Or trade school. My oldest is 24, Did only a bit of college.
        Finally finding some gainful employment, with full time hours. Dirty little
        secret around Atlanta/ Dekalb. You can apply if you’re white to lower paying
        jobs. Just don’t expect the phone to ring. Been working this, that the other
        part time job for the last 4 years. Had one good job, good benefits. Was
        physically assaulted by an irate coworker. Quit because he was literally
        scared for his life.

        Like

    • sturmudgeon says:

      Doug: great points… thanks!

      Like

  20. One of your BEST, Sundance!

    I’m remembering my frustration in January 2016 when Investment Advisors gave that bewildered look at a then-unnamed MAGAnomics discussion on how our economy would be transitioning.

    Although I was unclear on timing for transitions in sectors, it looked like a no-brainer that Fixed Income investments couldn’t possibly compete with a resurgent Equities market, that Emerging Markets would face a volatile outlook and Foreign Holdings in general would suffer as America became a magnet for worldwide investors, that Globalists would suffer as Mainstreet Manufacturing displaced Imports, that the rigged Hedging and Commodities Markets would be dicey until a President Trump corrected the corruption.

    Kind of blew up their Asset Allocation and packaged Risk Management pitches.

    God Bless President Trump!

    Liked by 1 person

  21. Looking around the corner, Sundance’s Wage Growth outlook looks like a Certainty with real Sustainability:

    • Immigration Control & Illegal Repatriation will prevent Globalists from flooding the market with an oversupply of Labor to suppress Wage Growth.

    • Continuing Wage Growth will enable growth in American Families as women can afford to take a break … constraining our Workforce Supply and driving Wage Growth even further. Perhaps we’ll enjoy yet another Baby Boom!

    Liked by 2 people

  22. Reloader says:

    “More money into the U.S Treasury and less dependence on welfare/social service programs have a combined exponential impact. You gain a dollar, and have no need to spend a dollar – the saved sum is doubled. That is how the SSI and safety net programs are saved under President Trump.”

    One simple part of this that all of us here understand is that when Taxes are reduced, federal income actually INCREASES. Tax Cuts DO NOT need to be “paid for” somehow.

    It is my understanding that the Congress made a law some time ago which makes it ILLEGAL for Legislators to think this way or consider the effects when planning a budget and expenditures. Do I have that right? And is that not one of the biggest problems with a Congress that is among our enemies?

    Liked by 2 people

  23. GB Bari says:

    I love it when a plan comes together…..

    🙂

    Like

  24. Curry Worsham says:

    Winnerful,
    Winnerful!

    Liked by 3 people

    • Curry Worsham says:

      Liked by 2 people

    • Your Tour Guide says:

      Local liberal newspaper columnist went to interview
      Lawrence Welk. Was sent for the purpose of making
      fun of him, telling everyone what a “square”, a “throwback”
      he was.

      Didn’t do it. Guy was liberal as all get out, but he LOVED
      Welk. Went on and on about what an absolutely nice man
      he was.

      Like

  25. Arthur says:

    Can you imagine if the globalists didn’t sell their country and people down the river, especially to the Chinese ? If instead of giving China the family jewels (technology, know-how, capital, markets), the entire West would’ve kept those under strict control ?

    It took the West hundreds of years and generations of sacrifices to acquire that advantage – and they gave it up all, for a few pennies.
    When Donald Trump says China rose at our expense he’s dead right.

    Hundreds of millions of Chinese got into middle class, subsidized by the American (European, Canadian, Australian) worker – who didn’t have an increase in real income in decades.

    All signed and delivered by politicians bought and paid for by the wealthy elite and the Chinese.

    Liked by 1 person

  26. Monadnock says:

    We are gonna build stuff, and build stuff, and build stuff…. HERE!!

    Like

  27. L. E. Joiner says:

    Growth solves a multitude of ills, but with growth comes inflation. Got to be careful. This is where automation can actually help: productivity increases can help compensate for increased labor demand and higher prices. But it’s a balancing act. /LEJ

    Like

    • svenwg says:

      Growth, in its self, does not cause inflation. In fact growth should lower prices not increase them as more products and widgets are delivered to market, supply and demand takes affect.

      Inflation occurs when there are not enough widgets to go around due to the extra number of consumers as well as the Federal Reserve upping interest rates to reign in inflation having the opposite effect when done before the market actually overheats, as is the case at present where there have been 5 increases in the borrowing rate since President Trump came to Office.

      Like

  28. 6x47 says:

    It’s amazing to see the resistance to the Trump policy shift “Main Street over Wall Street”, from the same people who think nothing at all of burning trillions of taxpayer dollars, skewing markets and driving up prices with burdensome regulations, and costing consumers hundreds of millions in higher prices … to “protect the environment”. Or some other politically correct Leftist shibboleth.

    Main Street vs. Wall Street is simply bringing the value chain that generates the bottom line profits of the firm back to the United States. If Walmart or General Motors makes a profit it doesn’t matter to Wall Street where the value was added that generated the profit; so if the workers are in China or Mexico or the United States is a matter of no consequence. The Trump tax breaks and allowance to repatriate overseas profits was intended to ease the blow of transitioning. And it’s working.

    Like

  29. Suite D says:

    Playing all across the US: My Big Fat American Paycheck

    Like

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