Trump’s Big Economic Win: A Manufacturing Boom in America

Factory activity in the U.S. reached a 13-year peak last month in September according to a survey published by the Institute for Supply Management (ISM). This is extraordinary in light of clear hindrances imposed by the hurricanes Irma and Harvey- which were projected to place a serious damper on growth this quarter.

The country’s economic outlook was further improved by data which revealed a significant rebound in construction markets and development spending in August. This major uptick in productivity and the concordant hike in prices are believed to raise the chance the Federal Reserve will raise rates of interest in December.

The ISM says that its national factory activity index jumped to a staggeringly high reading of 60.8 in September- which is the highest reading for the index since May of 2004. According to economists, a reading of the ISM’s national factory activity index higher than 50 is indicative of an expansion in manufacturing. Manufacturing accounts for roughly 12% of the U.S. economy.

According to the ISM, the disruptive effect of the twin hurricanes earlier in the season resulted in pricing issues in the supply chain of chemical products- a resource that would be expected to impact every industry within manufacturing. There have been concerns that the storms would also impede the production and movement of food and beverage products and supplies as well as tobacco. It has been estimated that the total losses to the American economy as resulting from the seasonal storms would add up to about 6%, just half of the portion represented by manufacturing.

The weakness brought on by the two major storms, it is believed, will be found to have been exacerbated by the power cuts caused by hurricane Irma. Nevertheless, the ISM’s report’ sub-index covering production still rose by 1 and a half points bringing the final reading to 62.2 at the end of September.

The question of the day is, ‘how much does this have to do with Trump’s work on the economy?’ Well, the fact is that Trump’s work to bring manufacturing back to the United States has created no less than 34,000 high-quality jobs. Those are just the jobs that are currently up, manned, and running- but the administration says that it has effectively created 500,000 jobs based on projections which as yet have not been filled by workers- but are expected to be soon.

Keep in mind that immediately after the votes came in last November, and Trump was the clear winner- he began tweeting and calling major manufacturers and telling them that it would be in their best interest to bring jobs back state-side and put their people back to work. They listened. Before Trump even took office, Ford returned its manufacturing plants to the U.S, and several other large entities followed suit.

But that’s just part of the story. On day one in office, Trump began signing executive orders that would strip away the bulk of regulatory hindrances on industry and manufacturing- regulatory hindrances that prevented businesses of all kinds and sizes from reaching their full potential in this country.

Removing the excessive regulations on business alone could easily account for the unprecedented surge in the nation’s manufacturing productivity. The new jobs, just make it all the more credible that our new manufacturing prowess is largely, if not entirely, due to Trump’s business acumen- and his affection for the American worker.

According to Industrial Equipment News (IEN), Trump has reversed hundreds of regulations amounting to about 20% of the total regulations imposed on businesses before his administration took office. Trump has delayed and withdrawn a total of no less than 860 proposed new regulations within his first five months in office. This has given businesses of all kinds much more breathing room to get started, grow, develop, innovate, and to hire new employees.

So when Trump says he’s created 500,000 jobs- it’s a projection- you might even say it’s an exaggeration. But it’s not a baseless exaggeration- it’s an exaggeration based on what has become possible based on the enormous elbow room he’s created for profitable enterprises to do what they need to do to flourish.

Neomi Rao, the head of the White House Office of Information and Regulatory Affairs said, “It’s really the beginning of a kind of fundamental regulatory reform.”

Related concerns over the environment have been raised by Democrats over lowered regulations. But the EPA has been responsible for more environmental damage than it’s prevented- and has been a major drain on the economy as well, a fact that few Democrats seem to understand.

~ American Liberty Report

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