I found President Trump’s State of the Union Address last night (February 4, 2020) 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:
Three years ago, we launched the great American comeback. Tonight, I stand before you to share the incredible results. Jobs are booming, incomes are soaring, poverty is plummeting, crime is falling, confidence is surging, and our country is thriving and highly respected again. (Applause.) America’s enemies are on the run, America’s fortunes are on the rise, and America’s future is blazing bright.
The years of economic decay are over. (Applause.) The days of our country being used, taken advantage of, and even scorned by other nations are long behind us. (Applause.) Gone too are the broken promises, jobless recoveries, tired platitudes, and constant excuses for the depletion of American wealth, power, and prestige.
In just three short years, we have shattered the mentality of American decline, and we have rejected the downsizing of America’s destiny. We have totally rejected the downsizing. We are moving forward at a pace that was unimaginable just a short time ago, and we are never, ever going back. (Applause.)
I am thrilled to report to you tonight that our economy is the best it has ever been. Our military is completely rebuilt, with its power being unmatched anywhere in the world — and it’s not even close. Our borders are secure. Our families are flourishing. Our values are renewed. Our pride is restored. And for all of these reasons, I say to the people of our great country and to the members of Congress: The state of our Union is stronger than ever before. (Applause.)
The vision I will lay out this evening demonstrates how we are building the world’s most prosperous and inclusive society — one where every citizen can join in America’s unparalleled success and where every community can take part in America’s extraordinary rise.
From the instant I took office, I moved rapidly to revive the U.S. economy — slashing a record number of job-killing regulations, enacting historic and record-setting tax cuts, and fighting for fair and reciprocal trade agreements. (Applause.) Our agenda is relentlessly pro-worker, pro-family, pro-growth, and, most of all, pro-American. (Applause.) Thank you. We are advancing with unbridled optimism and lifting our citizens of every race, color, religion, and creed very, very high.
Since my election, we have created 7 million new jobs — 5 million more than government experts projected during the previous administration. (Applause.)
The unemployment rate is the lowest in over half a century. (Applause.) And very incredibly, the average unemployment rate under my administration is lower than any administration in the history of our country. (Applause.) True. If we hadn’t reversed the failed economic policies of the previous administration, the world would not now be witnessing this great economic success. (Applause.)
The unemployment rate for African Americans, Hispanic Americans, and Asian Americans has reached the lowest levels in history. (Applause.) African American youth unemployment has reached an all-time low. (Applause.) African American poverty has declined to the lowest rate ever recorded. (Applause.)
The unemployment rate for women reached the lowest level in almost 70 years. And, last year, women filled 72 percent of all new jobs added. (Applause.)
The veterans unemployment rate dropped to a record low. (Applause.) The unemployment rate for disabled Americans has reached an all-time low. (Applause.)
Workers without a high school diploma have achieved the lowest unemployment rate recorded in U.S. history. (Applause.) A record number of young Americans are now employed. (Applause.)
Under the last administration, more than 10 million people were added to the food stamp rolls. Under my administration, 7 million Americans have come off food stamps, and 10 million people have been lifted off of welfare. (Applause.)
In eight years under the last administration, over 300,000 working-age people dropped out of the workforce. In just three years of my administration, 3.5 million people — working-age people — have joined the workforce. (Applause.)
Since my election, the net worth of the bottom half of wage earners has increased by 47 percent — three times faster than the increase for the top 1 percent. (Applause.) After decades of flat and falling incomes, wages are rising fast — and, wonderfully, they are rising fastest for low-income workers, who have seen a 16 percent pay increase since my election. (Applause.) This is a blue-collar boom. (Applause.)
Real median household income is now at the highest level ever recorded. (Applause.)
Since my election, U.S. stock markets have soared 70 percent, adding more than $12 trillion to our nation’s wealth, transcending anything anyone believed was possible. This is a record. It is something that every country in the world is looking up to. They admire. (Applause.) Consumer confidence has just reached amazing new highs.
All of those millions of people with 401(k)s and pensions are doing far better than they have ever done before with increases of 60, 70, 80, 90, and 100 percent, and even more.
Likewise, we are restoring our nation’s manufacturing might, even though predictions were, as you all know, that this could never, ever be done. After losing 60,000 factories under the previous two administrations, America has now gained 12,000 new factories under my administration, with thousands upon thousands of plants and factories being planned or being built. (Applause.) Companies are not leaving; they are coming back to the USA. (Applause.) The fact is that everybody wants to be where the action is, and the United States of America is indeed the place where the action is. (Applause.)
One of the biggest promises I made to the American people was to replace the disastrous NAFTA trade deal. (Applause.) In fact, unfair trade is perhaps the single biggest reason that I decided to run for President. Following NAFTA’s adoption, our nation lost one in four manufacturing jobs. Many politicians came and went, pledging to change or replace NAFTA, only to do so, and then absolutely nothing happened. But unlike so many who came before me, I keep my promises. We did our job. (Applause.)
Six days ago, I replaced NAFTA and signed the brand-new U.S.-Mexico-Canada Agreement into law. The USMCA will create nearly 100,000 new high-paying American auto jobs, and massively boost exports for our farmers, ranchers, and factory workers. (Applause.) It will also bring trade with Mexico and Canada to a much higher level, but also to be a much greater degree of fairness and reciprocity. We will have that: fairness and reciprocity. And I say that, finally, because it’s been many, many years that we were treated fairly on trade. (Applause.)
The Special Note summarizes my overall thoughts about our economic situation
SPX at 3297.59 as this post is written