WASHINGTON, November 18, 2016 – The mood in the country today can be described as dim. But that is not Donald Trump. It has been this way for many years almost as if a dark nasty cloud has been hanging over the heads of Americans. Read also:
Fortunately, President-elect Donald Trump promises to lift the cloud. He will bring back the Reagan, “morning in America” attitude that led to good times for almost all Americans. In spite of his (grossly exaggerated by the media) character flaws, his actions will be exactly what the country needs.
Obama entered office during a very severe recession brought on by the financial crisis at that time. While he should have concentrated his efforts on turning the economy around, as past presidents have always done during economic downturns, he passed a misdirected stimulus package and then moved on, failing to check if it stimulated anything.
Obama’s lack of action on economic growth along with no plan to increase jobs, confused the public curious as to his personal motivations. Obama, realizing his party held strong majorities in both the House and the Senate, then concentrated his economic policy not toward stimulating economic growth but towards curing perceived social injustices.
Obama reasoned that it is an injustice that 50 million Americans did not have health insurance. So, he crafted a plan that he forced through Congress. Some Republicans may have agreed to support the Affordable Care Act if some of their concerns were addressed.
Instead Obama did not bother to get support from even one Republican.
This was confusing to Americans who have seen members of Congress battle, but who have never seen major legislation passed without at least some support from the opposing party. This confusion darkened America’s cloud of uncertainty.
Public confusion and uncertainty peaked when the architect of Obama’s health care plan called Americans “stupid” and then admitted he lied to Americans, and Congress, as to the truth of the plan. President Obama was also found to be less than truthful when he said Americans can keep their current plan, keep their current doctor and pay less for healthcare.
The president’s lack of forthrightness grew America’s cloud of uncertainty.
Then Obama wanted to stop the banking and financial world from taking certain actions. Although the reality is that government policy designed to increase to home ownership rate is what really caused the financial crisis, Obama blamed the banking and financial industry.
He wanted the banks to stop taking some risks and to stop lending to some people. He pushed through the Dodd/Frank legislation which reduced predatory lending. Unfortunately, it reduced all lending, which not only lowered economic growth, but also rendered Monetary Policy ineffective.
Americans were confused when they saw that Obama’s policy actions consistently tended to slow economic growth. As growth continued to remain slow, year after year, Americans grew gloomier and the dark socioeconomic cloud grew thicker.
Then Americans chose to elect Donald Trump as their next president. As with any president, all of us will not always agree with all his decisions. But right now, the country needs to restore economic growth. That’s exactly what Trump will do, and he will do it very quickly.
The formula he will use is the same one used by two previous Democratic presidents—Kennedy and Clinton—as well as Republican President Ronald Reagan, who proposed the Economic Tax Recovery Act in the 1980s. That bill was designed to dramatically cut personal and business taxes to benefit the whole of the economy by employing what is known as supply-side economics. Each time, these naturally stimulative actions worked very well to boost jobs, productivity and the economy.
Trump will reduce taxes for all Americans. This will lead to consumers having more money to spend and business having more money to invest. At the same, Trump will begin the long process of controlling government spending by taking actions that only a successful businessperson, not a career politician, would understand. This will allow him to increase spending on our long-neglected and devastated infrastructure.
Trump will work to fix healthcare, although the final solution make take a bit more time than Trump would like. His solutions will reduce cost, improve efficiency, increase quality and somehow provide for those in need, without overburdening the rest of us. It will do good for President-elect Trump to remember it is easier to create government entitlements than to take them away. Too drastically and too quickly removing people from present healthcare programs may create a backlash against the nascent administration.
He will repeal Dodd/Frank and replace it with something that provides Americans necessary protections but does not cripple the entire banking industry. These actions will likely double the growth rate of the economy, provide opportunity, increase personal incomes and, with increased job opportunity and income, help mitigate and reduce social problems.
Donald Trump and his incoming administration will lift the dark economic cloud over the United States and bring the good times back to America once again.