Sit back and watch liberals heads explode as they try to twist logic and experienced reality and come up with explanations from their bizarre alternate reality.
Not Reagan Yet
Containing economic expectations.
President Donald Trump on Friday at the World Economic Forum annual meeting in Davos, Switzerland. PHOTO: FABRICE COFFRINI/AGENCE FRANCE-PRESSE/GETTY IMAGES
By
James Freeman
Jan. 26, 2018 4:13 p.m. ET
3 COMMENTS
Today was a reminder that while it may not be all that difficult to exceed the mediocrity of the Obama era, it’s way too soon to declare the return of Reagan-style growth.
President Trump was ebullient on Wednesday. He figured that the Commerce Department would report this morning that in the final three months of 2017 GDP grew at or above 3% for the third consecutive quarter—something that never happened during the eight long years that his predecessor occupied the Oval Office.
Mr. Trump’s expectation wasn’t unreasonable, given estimates from several regional Federal Reserve banks. But growth clocked in at 2.6%. This is better than a typical Obama quarter, but voters took a gamble on Mr. Trump because they rightly demanded more. And beneath this morning’s disappointing headline, there’s reason to believe they’ll eventually get it.
https://twitter.com/mattyglesias/status/956889902574120961
Matthew Yglesias
Times and Post going with very different spin on Q4 GDP numbers.
Business investment surged in the fourth quarter. The Journalexplains: “Nonresidential fixed investment—reflecting spending on commercial construction, equipment and software—climbed at a 6.8% rate.”
Joseph LaVorgna of Natixisthinks that once government figures go through their usual period of revisions, it may turn out that we’re still hitting threes:
Not Reagan Yet
Containing economic expectations.
President Donald Trump on Friday at the World Economic Forum annual meeting in Davos, Switzerland. PHOTO: FABRICE COFFRINI/AGENCE FRANCE-PRESSE/GETTY IMAGES
By
James Freeman
Jan. 26, 2018 4:13 p.m. ET
3 COMMENTS
Today was a reminder that while it may not be all that difficult to exceed the mediocrity of the Obama era, it’s way too soon to declare the return of Reagan-style growth.
President Trump was ebullient on Wednesday. He figured that the Commerce Department would report this morning that in the final three months of 2017 GDP grew at or above 3% for the third consecutive quarter—something that never happened during the eight long years that his predecessor occupied the Oval Office.
Mr. Trump’s expectation wasn’t unreasonable, given estimates from several regional Federal Reserve banks. But growth clocked in at 2.6%. This is better than a typical Obama quarter, but voters took a gamble on Mr. Trump because they rightly demanded more. And beneath this morning’s disappointing headline, there’s reason to believe they’ll eventually get it.
https://twitter.com/mattyglesias/status/956889902574120961
Matthew YglesiasTimes and Post going with very different spin on Q4 GDP numbers.
Business investment surged in the fourth quarter. The Journalexplains: “Nonresidential fixed investment—reflecting spending on commercial construction, equipment and software—climbed at a 6.8% rate.”
Joseph LaVorgna of Natixisthinks that once government figures go through their usual period of revisions, it may turn out that we’re still hitting threes:
Given the fact that the Q4 figures will be revised three times between now and the end of July, we would not be surprised to learn that growth ultimately fared much better than what was first reported. At a minimum, the strength in demand should lead to positive growth momentum for the current quarter.
Speaking of the current quarter, the Journal separately reports on the impact of tax reform on businesses nationwide:Just weeks after the federal government adopted the biggest tax overhaul in three decades, the effects are rippling through corner offices and boardrooms, with companies large and small dusting off once-shelved plans, re-evaluating existing projects and exploring new investment in factories and equipment.
Specialty drugmaker Amicus Therapeutics Inc. has decided to spend as much as $200 million on a new production facility in the U.S. instead of Europe.Kimberly-Clark Corp. , maker of Kleenex tissues, is spending hundreds of millions of dollars to put new machinery in one of its U.S. factories, even as it closes others and cuts thousands of jobs. Aramark , the catering and uniform giant, expects to save nearly $500 million on two recently completed acquisitions.
The rapid adaptation goes well beyond the early announcements of $1,000 bonuses or minimum-wage increases for rank-and-file workers. And this is just the beginning.
It sure is. This morning FedEx was the latest company to announce higher wages and new U.S. capital projects in the wake of the tax cut. And the Journal notes more good news from across the economy:Specialty drugmaker Amicus Therapeutics Inc. has decided to spend as much as $200 million on a new production facility in the U.S. instead of Europe.Kimberly-Clark Corp. , maker of Kleenex tissues, is spending hundreds of millions of dollars to put new machinery in one of its U.S. factories, even as it closes others and cuts thousands of jobs. Aramark , the catering and uniform giant, expects to save nearly $500 million on two recently completed acquisitions.
The rapid adaptation goes well beyond the early announcements of $1,000 bonuses or minimum-wage increases for rank-and-file workers. And this is just the beginning.
Earnings also continue to boost major stock indexes. Of the roughly quarter of companies in the S&P 500 that have reported fourth-quarter results through Friday, 77% have beat earnings estimates, according to FactSet. That puts earnings for the companies in the index on track to rise 12% from the prior year, FactSet data show.
Not Reagan, but not bad.
