Tuesday Night, the President, Donald Trump, tried to deliver an economic message in the third state of the Union address. In comparison to the foreboding chord he stuck in 2017, his tone was expected to be markedly. He has a theme to this speech, which is akin to “Mission Accomplished” to make sense of branding. It is considered a great American comeback. Mark Hamrick gives the statement. He is the senior economic analyst at Bankrate.com.
Through different metrics, it is found that the economy is healthy. But, there are a few economists who are claiming for the economy is degrading slowly. Many top rosy line numbers are difficult to understand the portrait of America’s financial health. The growth of the economy of America is constantly decreasing. When it comes to the distribution of the wage gains, it is made to give away the lowest wages. There are many Americans for whom the higher expenses on education and health care are canceled to rise in the market. The changes made tend to undermine the benefits in the improvement of the wages, said by Hamrick. By deciding for embark on trade confrontation, the president decided for it to some degree. That is an area, where the trade policies are counterproductive.
What about the labor market?
In December, the labor market of the U.S. added 145000 jobs. According to the Bureau of Labor Statistics, the jobs are added for a total of 2.1 million throughout the entire year of 2019 (average 176000 per month). The range of unemployment is decreasing at a rate of 3.5%. The gain of last year does not match failed to match those of 2018. This is the time when 2.7 million jobs were added at an average of 223000 per month.
Trump claims that, for the black workers, his presidency is considered as a boon, in which the rate of employment is an all-time low. The institution of left-leaning economic policy points out, which did not expose the whole story. It happens because still, the black workers are twice in comparison to the white workers.
In 2019, the benchmark S&P 500 rose by 29%. The heels came of December 2018, routed, which erased all the gains, which attain for that year in a few weeks. In spite of a phase, against China, one deal made, which is called a truce to the trade war. The investment of the business retains anemic. Plus, the higher costs, which are made from the tariffs, weigh on the profits of corporations. Because of the challenges, the stock spent early weeks of 2020, which got buffeted, which are coupled with the unfolding of the crisis of coronavirus.
The stock market seen to be re-emergence of volatility said by Hamrick. It is one of the hallmarks, which is the return of the instability. This helps to see the big swings up and as well as down too. The economists said that the wealthiest Americans have disproportionately benefited. The benefits came from the stock market’s meteoric recovery.