The Obama Economy Was A Disaster
As a part of this mid-term election, former President Barack Obama has hit the campaign trail. It appears in joining this fight his main target is countering the enormous success of the Trump economy. Barack contends that he left Trump with a booming economy based on the long fight back from the 2008 recession. Unfortunately, the facts don’t support his contention. By all objective standards, Obama’s economy was a disaster.
By October of 2007, it dawned on investors that the anti-business Democrats were likely to win in 2008. That month, the Dow Jones Industrial Average stood at 16,829. There is no greater judge than the Dow to gauge the direction of the country’s economy. You can make all kind of excuses for what happened during Obama’s eight years but the fact remains he handed off to President Trump on election night, November 9, 2016, an economy the investment community rated at 18,334 on the Dow.
Therefore, in the eight years of the Obama economy, he increased the Dow 1,504 points or by 2.16% per year. By contrast, the Dow reached 26,458 in the first seven quarters of the Trump presidency. The Dow increased at a rate of 23% per year.
Unfortunately, both the Democrat-main-stream press and the pro-Trump press have both missed this point. This increase of 21% more per year in stock value by Trump should cause everyone in America to rethink their vote for Democrats next Tuesday.
Now consider Trump’s GDP versus Obama’s. Obama averaged just under 2% GDP growth per year; Trump is running 3.5% to 4% per year. That additional 2% increase in the annual rate of growth of the GDP equates to Trump’s economy adding over $1 Billion of new sales of products and services every day of the year; $1 billion more than Obama’s economy did – New sales of products and services that weren’t there the day before.
Electing Democrats puts all this good news in jeopardy.
Proof – 2% x 21 trillion = $420 billion / 365 day =$1.151 billion per day. And that is what is at stake in the 2018 mid-term election.
Dick McDonald is the CEO of TheUSAplan.com.