This Thanksgiving, Americans in general — and free-market conservatives in particular — have plenty for which to be grateful. And much of it would be absent had the White House’s current occupant not become president on November 8, 2016.
The day after Donald J. Trump defeated Hillary Clinton, Princeton University economist Paul Krugman called Trump’s victory “the mother of all adverse effects.” He predicted “very probably . . . a global recession, with no end in sight.”
The Dow Jones Industrial Average, NASDAQ, and S&P 500 all hit record highs on Tuesday. The Wilshire 5000 Index calculates that some $3.4 trillion in new wealth has been created since President Trump’s inauguration and $5.4 trillion since his election. Fueled by the reality of deregulation, expectations of lower taxes, and a new tone in Washington that applauds free enterprise rather than excoriate it, the economy is on fire.
Unemployment is at 4.1 percent, a 17-year low. New unemployment claims in September were at their most modest since 1974. Goldman Sachs on November 20 “lowered our unemployment rate forecast to 3.7 percent by end-2018 and 3.5 percent by end-2019.” According to the Wall Street powerhouse’s chief economist Jan Hatzius, “Such a scenario would take the U.S. labor market into territory almost never seen outside of a major wartime mobilization.”