Thanks Donald! Consumer confidence is at its highest in 15 years. In case you’re wondering or yes Thanks Donald is warranted. Everything Trump has done up to this point has been geared towards increasing consumer spending and consumer confidence. I will go into each deal later on but let me first explain the unifying theory behind everything.
In the view of President Trump and a lot of other economists consumer spending is one of the main drivers of the economy. More than any other factor consumer spending is the one which you can influence using psychological factors. When people feel hopeful about the future they are more likely to spend more. Note that they do not need to necessarily earn more to spend more. They can put more things on credit, save less, put less of their income into debt servicing, and a whole host of other things.
When people spend more on the economy the demand goes up so companies are either forced to produce more of the demanded product or hire more people to provide the demanded service. More available jobs means that labor has better bargaining power to negotiate for higher wages and more disposable income to spend on even more things. Which then leads to a great cycle of economic growth. All this happens just by instilling a more positive outlook in everyone. We haven’t even gone into the stimulus package, tax cuts, deregulation and other things President Trump has planned for the economy. This is the difference between someone telling you that yes you can get your jobs back as opposed to no your jobs are gone forever and you will have to live on scraps from now on while mortgaging your house to get a second degree.
The number of jobs in the various deals don’t even matter. All that matters is that the populace sees that Trump will fight for their jobs no matter how small and will act to bring in new ones.
Carrier -The left scoffs at the president-elect getting involved at such a small deal. 1000 or less jobs.The fact that its small actually helps build confidence too because it gives people hope that the President will act to save jobs no matter how few.
Softtel- Again no matter how few the jobs Trump is giving everyone the hope that he will be facilitating the creation of new ones. Nobody expected Trump to create jobs while still President elect. In fact no other President-elect has been as active as he is. This gives people hope that he will create more in the future.
Boeing and Lockheed Martin – At some level almost everyone is concerned about the debt. It is not the primary concern for most but they still would not like to see it balloon. All people really need to see is that there are steps taken to control it. Early targeting of out of control government programs shows this. The actual figures adding up at the end of the day doesn’t matter and wont be shown until the end of the presidency anyway. All that matters is that people see some visible action taken.
It is very refreshing to have a President who actually understands the psychological aspect of the economy. I cannot wait for the start of the actual Presidency.