Get ready, because the Trump economy is about to take off in a big way. After years of steady growth and job creation, several key factors are aligning that could supercharge the economy and send it into overdrive. Here are five important reasons why the Trump boom is just getting started:
1. Continued Tax Cuts and Deregulation
One of the hallmarks of the Trump presidency has been a relentless push for lower taxes and less burdensome regulations. And with a Republican-controlled Congress, the President is poised to double down on these pro-business policies in his second term. The White House reports that the average American family has saved over $2,000 per year thanks to the 2017 Tax Cuts and Jobs Act, and there's more where that came from.
2. Robust Consumer Spending
Despite concerns about a potential recession, American consumers have continued to open their wallets and spend at a healthy clip. The latest data from the Bureau of Economic Analysis shows personal consumption expenditures rose by 2.4% in January, a positive sign that the consumer engine is still firing on all cylinders.
3. Booming Stock Market
The roaring stock market under Trump has minted millions of new millionaires, fueling a virtuous cycle of increased consumer confidence and spending. The Dow Jones Industrial Average recently topped 35,000 for the first time ever, as CNBC reported, and many analysts believe there's still plenty of room for the market to run.
4. Energy Independence
The Trump administration's "energy dominance" agenda has transformed the US into the world's leading producer of oil and natural gas. This has not only boosted American manufacturing and created hundreds of thousands of high-paying jobs, but it has also insulated the US economy from volatile swings in global energy prices. According to the Energy Information Administration, the US is now a net exporter of energy for the first time in decades.
5. Renegotiated Trade Deals
Love him or hate him, Trump has fundamentally reshaped America's trade relationships with the rest of the world. From the new USMCA agreement with Canada and Mexico to the historic phase one deal with China, the President has fought to get better terms for American workers and businesses. While the process has been messy at times, the ultimate payoff could be huge.
The bottom line is that the fundamentals of the US economy are as strong as they've been in decades. With the right policies in place and the Trump team's foot still firmly on the gas, the next four years could see economic growth and job creation unlike anything we've witnessed in a generation. Get ready for liftoff.