I found President Trump’s State of the Union Address last night (February 5, 2019) to contain some noteworthy comments. While I could comment extensively on many parts of the speech, for now I will indicate excerpts that I found most relevant with regard to the economic situation, and may comment upon them at a future point. I am highlighting these excerpts for many reasons; it should be noted that I do not necessarily agree with any or all of them.
Here are the excerpts I found most relevant, in the order they occurred in the speech:
In just over 2 years since the election, we have launched an unprecedented economic boom — a boom that has rarely been seen before. We have created 5.3 million new jobs and importantly added 600,000 new manufacturing jobs — something which almost everyone said was impossible to do, but the fact is, we are just getting started.
Wages are rising at the fastest pace in decades, and growing for blue collar workers, who I promised to fight for, faster than anyone else. Nearly 5 million Americans have been lifted off food stamps. The United States economy is growing almost twice as fast today as when I took office, and we are considered far and away the hottest economy anywhere in the world. Unemployment has reached the lowest rate in half a century. African-American, Hispanic-American and Asian-American unemployment have all reached their lowest levels ever recorded. Unemployment for Americans with disabilities has also reached an all-time low. More people are working now than at any time in our history –- 157 million.
We passed a massive tax cut for working families and doubled the child tax credit.
We virtually ended the estate, or death, tax on small businesses, ranches, and family farms.
We eliminated the very unpopular Obamacare individual mandate penalty — and to give critically ill patients access to life-saving cures, we passed right to try.
My Administration has cut more regulations in a short time than any other administration during its entire tenure. Companies are coming back to our country in large numbers thanks to historic reductions in taxes and regulations.
We have unleashed a revolution in American energy — the United States is now the number one producer of oil and natural gas in the world. And now, for the first time in 65 years, we are a net exporter of energy.
After 24 months of rapid progress, our economy is the envy of the world, our military is the most powerful on earth, and America is winning each and every day. Members of Congress: the State of our Union is strong. Our country is vibrant and our economy is thriving like never before.
On Friday, it was announced that we added another 304,000 jobs last month alone — almost double what was expected. An economic miracle is taking place in the United States — and the only thing that can stop it are foolish wars, politics, or ridiculous partisan investigations.
also:
As we work to defend our people’s safety, we must also ensure our economic resurgence continues at a rapid pace.
No one has benefitted more from our thriving economy than women, who have filled 58 percent of the new jobs created in the last year. All Americans can be proud that we have more women in the workforce than ever before — and exactly one century after the Congress passed the Constitutional amendment giving women the right to vote, we also have more women serving in the Congress than ever before.
As part of our commitment to improving opportunity for women everywhere, this Thursday we are launching the first ever Government-wide initiative focused on economic empowerment for women in developing countries.
To build on our incredible economic success, one priority is paramount — reversing decades of calamitous trade policies.
We are now making it clear to China that after years of targeting our industries, and stealing our intellectual property, the theft of American jobs and wealth has come to an end.
Therefore, we recently imposed tariffs on $250 billion of Chinese goods — and now our Treasury is receiving billions of dollars a month from a country that never gave us a dime. But I don’t blame China for taking advantage of us — I blame our leaders and representatives for allowing this travesty to happen. I have great respect for President Xi, and we are now working on a new trade deal with China. But it must include real, structural change to end unfair trade practices, reduce our chronic trade deficit, and protect American jobs.
Another historic trade blunder was the catastrophe known as NAFTA.
I have met the men and women of Michigan, Ohio, Pennsylvania, Indiana, New Hampshire, and many other States whose dreams were shattered by NAFTA. For years, politicians promised them they would negotiate for a better deal. But no one ever tried — until now.
Our new U.S.-Mexico-Canada Agreement — or USMCA — will replace NAFTA and deliver for American workers: bringing back our manufacturing jobs, expanding American agriculture, protecting intellectual property, and ensuring that more cars are proudly stamped with four beautiful words: made in the USA.
Tonight, I am also asking you to pass the United States Reciprocal Trade Act, so that if another country places an unfair tariff on an American product, we can charge them the exact same tariff on the same product that they sell to us.
Both parties should be able to unite for a great rebuilding of America’s crumbling infrastructure.
I know that the Congress is eager to pass an infrastructure bill — and I am eager to work with you on legislation to deliver new and important infrastructure investment, including investments in the cutting edge industries of the future. This is not an option. This is a necessity.
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The Special Note summarizes my overall thoughts about our economic situation
SPX at 2737.70 as this post is written