Trumponomics and Carrier

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There has been a yuge uproar over the carrier deal, Tweets about Boeing, and complaints about budget overruns in the f-35 plane. Complaints range from Trump not doing enough to save all jobs to Trump practicing crony capitalism, to Trump not being aware of what his actions have wrought.

This article will not attempt to defend each individual action. That would be a waste of time as many many many other people on either side have done so already. I will instead explain why these actions were taken. Once you understand the why, you will understand why everything makes sense.

Government infrastructure projects, deporting illegal immigrants, lower taxes and lower regulations. All those are good ideas. The problem is they take too long to implement. Trump would have to be president first, then run the changes through congress, and then wait for their effects to happen. The kicker is none of these is the primary driver of the economy. That driver I am referring to is consumer spending. Increase consumer spending and more jobs are generated in the service and sales industry. More goods need to be manufactured. It even helps in foreign policy as America becomes a more desirable market to have access to.

Hopefully you already see where this is going. If not read on. What does the carrier deal and other things have to do with this? In one word its “hope” or if you want to use a word that has not been polluted by Obama then “optimism”. People who are more optimistic spend more because they are more secure in their future. As previously mentioned this then makes the economy more healthy. In fact the “feeling” of a positive economy in effect makes that positive economy happen.

The carrier deal is a remarkably small thing for a president to get involved in. The next company Trump targeted, Rexnord, was even smaller at 300 jobs. Yet they give workers all over the feeling that their jobs will be protected. That the government will fight tooth and nail to preserve their jobs. Detractors will say that Trump had to give incentives to the company, or that Trump did not save ALL jobs as he promised. Yet that is immaterial. The people who count see a president attempt to keep their jobs here which they have not seen before. Obama had a year to do what Trump did but declined to do so.

The new Airforce one and the f-35 planes are part of this as well. They give hope to the people that change is coming. There is a dual purpose to these tweets as well. A purpose that is more important than the message to the workers. Look at the stocks of Lockheed Martin and Boeing right after the tweets were done. They immediately took a dive. Now it is true that those stocks will recover in the next couple of days but the point still had to be made. Trump, with a simple tweet, can send stocks of a company crashing down or rising up. This is a critical point to be demonstrated right before his meeting with the technology companies.

My primary objective in this blog will be to give everyone an insight into the mindset of Trump and to help make order of the chaos that his moves seem to be based in. Make no mistake everything he does has a purpose. I hope I can serve to make it clear for everyone.

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