Today the Bureau of Economic Analysis presented the second estimate for the second quarter GDP growth. The second review increased the growth upward to 4.2%.
Within the data (full pdf release w/ tables) there are several interesting aspects.
(1) The upward revision to nonresidential fixed investment was mostly accounted for by investment in software. (2) Imports, which are a subtraction in the calculation of GDP, were revised down. Within goods, the downward revision was widespread, the largest contributor was petroleum.
In addition to presenting revised estimates for the second quarter, today’s release presents revised estimates of first-quarter wages and salaries, personal taxes, and contributions for government social insurance. Wages and salaries are now estimated to have increased $122.5 billion in the first quarter of 2018, an upward revision of $0.4 billion. (source data)
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.
Overall the MAGAnomic policy of the Trump administration is working on multiple sectors of the Main Street U.S. economy simultaneously. Keep in mind, all of this is happening BEFORE the trade policies and renegotiated trade deals kick in.
As the Main Street economy continues to expand, wages are increasing. It is noted that all wage measures are continually being revised upward as the value of labor within the economy continues to thrive. Due to increased labor value, in combination with decreased tax burdens, workers, specifically middle-class workers, are seeing large increases in actual take-home pay. This means more spending power, more disposable income, which also fuels the expanding economy. It’s an upward growth spiral.
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 and expanding. Growth-Growth-Growth. Jobs-Jobs-Jobs.
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.
Simultaneous to domestic capital investment inside the U.S., the ability of our nation to provide goods and services to meet the economic expansion, means less reliance on imported materials, goods and/or services. We are making more of our own stuff; exporting at a larger rate; and importing less – specifically due to the energy independence strategy within the larger Trump policy.
Every granular policy is like a small part in a larger machine. Each individual part of the MAGAnomic policy is working to compliment the larger objective.