Now, Which POTUS Inherited A Mess?

Wow!

President Trump likes to repeat the fictitious notion he inherited an economic mess but his hair is on fire over Obama’s factually based tweet this morning.

Here Are The Facts

NFP

Just The Facts Ma’am

Economic_Sign_Digits

GDP growth in Trump’s first three years has averaged only 26 basis points more than Obama’s last three years albeit with a budget deficit-to-GDP running over 50 percent higher than Obama’s deficit in his last calendar year.  A very expensive slight marginal increase in growth.   Inflation has almost doubled.

Under Trump, jobs have increased by 6.6 million versus 8.1 million in Obama’s last three years.  The average nominal wage is higher but the average real wage is lower.

Also, note the 25 percent increase in the trade-weighted dollar in Obama’s last three years and not a peep about the Fed from his administration.   Though still at a relatively high level, the trade-weighted dollar declined by almost 2.1 percent from January 2017 to January 2020.

…a stronger/weaker currency has a tightening/easing effect on economic conditions.  – Economist

A strengthening dollar is also highly inversely correlated with manufacturing jobs.

Man_4

Yet,  this….

Finally, the Chicago Fed’s National Financial Conditions Index illustrates the Trump economy is experiencing some of the loosest financial conditions since the early 1990s.

Chicago_FED

Now, who is conning who, folks?

If you’re in the con game and you don’t know who the mark is … you’re the mark. — David Mamet

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