The last thing that Democrats and their media mouthpieces want to talk about is the economy and the miraculous turnaround that has taken place due to Americans having elected a successful businessman as president.
Following years of surrender and malaise under Barack Obama who presided over an exodus of American jobs sent overseas, the Trump administration’s reversal of the freefall has resulted in the best economic figures in decades as well as record low black and Hispanic unemployment figures.
Despite all of the lies put forth by the media, Trump’s “Make America Great Again” slogan was always about economics and the unfair trade practices that have been brought about by globalization.
There were howls of anguish from all the usual suspects over the imposition of tariffs and the Chicken Little talking heads squawking that the sky was falling but the numbers don’t support the alarmism and on Friday, the U.S. Department of Labor struck a blow to the doomsayers by announcing that the impact of Trump’s tariffs in terms of inflation have been greatly exaggerated.
One example is that despite tariffs on steel and aluminum, consumers haven’t seen significant increases in the price of two key indicators that are household staples – beer and soup, both of which if the critics were right, would have seen price spikes due to the packaging.
But that did not happen.
— Reuters Top News (@Reuters) 10 мая 2019 г.
U.S. consumer prices rose moderately in April and underlying inflation remained muted, supporting the Federal Reserve’s projection of no further interest rates increases this year.
The persistently benign inflation reported by the Labor Department on Friday could, however, ratchet up White House pressure on the U.S. central bank to cut rates. President Donald Trump has repeatedly criticized the Fed for tightening monetary policy, arguing that inflation was low.
Trump has claimed the economy could go “up like a rocket if we did some lowering of rates, like one point.” On Friday, Trump tweeted, “Great Consumer Price Index just out. Really good, very low inflation! We have a great chance to ‘really rock!’ Good numbers all around.”
Great Consumer Price Index just out. Really good, very low inflation! We have a great chance to “really rock!” Good numbers all around.
— Donald J. Trump (@realDonaldTrump) 10 мая 2019 г.
Despite many claims that the tariffs would hurt U.S. consumers, they have not. For months, data have defied predictions of tariff-led inflation. And now it is indisuputably clear: the metals and China tariffs have not raised consumer prices.
The Department of Labor said Friday that its consumer price index was up just 2.0 percent compared with a year ago, indicating that prices are not rising particularly quickly. The Federal Reserve says it targets 2 percent inflation, although it uses a different measure of prices.
“Trump’s trade war may soon hit consumers’ wallets and paychecks,” NBC News declared in a headline last year.
“Tariffs will surely lead to higher prices for imported goods and, to a lesser extent, prices for non-imported goods that use imported materials,” the University of Pennsylvania’s business school Wharton reported.
“Tariffs are about to hit consumers, and it won’t be pretty,” CNBC claimed.
“Trade restrictions, by their nature, result in price increases for the goods in question. If the price of steel and aluminum goes up, manufacturers will be forced to pass those costs onto American consumers,” wrote Tori K. Whiting, the Jay Van Andel Trade Economist at the Heritage Foundation’s Roe Institute for Economic Policy Studies.
Commerce Secretary Wilbur Ross, however, said all of these predictions of higher prices were wrong. To the contrary, Ross argued tariffs would have little to no effect on U.S. consumers. He held up cans of Campbell’s soup and Budweiser beer to illustrate his point that the metals input into most consumer prices was very low and unlikely to rise.
When prices did not rise as predicted, the critics did not back off their claims. Many just moved the time frame, arguing that the forecast price increases were just taking time to move through the economy. But now that a year has passed, that an increasingly absurd position.
Take the prices of soup and beer, Secretary Ross’s examples. The price of soup is down 0.3 percent compared with a year ago. The price of beer consumer at home is down 0.3 percent.
Pay more for soup and beer? Here’s how Trump’s planned steel and aluminum tariffs could affect you https://t.co/CN8NPuVEDY
— USA TODAY (@USATODAY) 5 марта 2018 г.
OOPS! Chalk up another major fail for the anti-Trump propagandists, the latest in an already impressive list.