The Trump administration has been quite boastful concerning the economic situation with the President even tweeting about how great the American economy has been since he began his rule. The question remains to be, is the economic state in the country exceptional or is the economy doing like it has been over the years including during the Obama administration. Well, the answer rests on how one phrases the question.
Interestingly, there is a distinct difference between the rate of economic performance and the direction and pace of change of the economy. Thus, the economy under Trump seems exceptional if assessed using the level of economic activity and not the level of change. For instance, per-person gross domestic product adjusted for inflation is at an all-time high which is similar to other output measures. The finding should not be surprising because workers increase their productivity due to the improved technology, machinery,and increased capital. As such, the G.D.G is expected to rise most of the time and fall occasionally during the recession.
Other parameters of the level of economic performance are also impressive. For instance, the 3.8 percent level of unemployment is the lowest in eighteen years though it was lower in 1969. The lowest employment record was in 1953 and stood at 2.5 percent. Additionally, the low unemployment rate covers some weaknesses in the job market. For example, 79.2 percent of adults in the prime working years were working in May. The figure is way below the 2007 and 2000 statistics which stood at 80.3 and 81.9 percent respectively. However, looking at the level of economic performance, the Trump administration has a lot to be excited about.
Additionally, the direction the economy is taking seems positive in all measures. Employers are increasing jobs, the output is rising and so are the incomes. There is also the growth rate, a parameter that seems like a continuation of the second term of President Obama. In 2016, employers added about 195,000 jobs and in the first 17 months of the Trump administration, the average increase has been 190,000.
Now, how can we speak about the Trump economy? It is simple, the President took up an economy that was already good. As such, during his rule, the economy continues to grow at about the same rate as it did before he started his term through increased employment and higher output levels. However, there are numerous economic problems that remain in the United States. As such, the degree of credit that President gets for the state of the economy remains to be an open debate.