The Trump administration has done nothing at all to stimulate the U.S. economy. On the contrary, they have done their best to torpedo the economy. The Trump tax cuts to the wealthy have gone into personal wealth accounts, adding to the $100 trillion dollars of stocks, bonds, and real estate already owned by them while the same tax cuts continue to blow a giant hole of more than $1 trillion in his federal budget deficits. Engaging China and others in a trade war is also counterproductive. Everyone loses by continuing to follow this misguided practice. Tariffs are paid by the consumers of the importing countries. Holding up and thwarting immigration is also exactly the wrong approach to solving labor shortages. At full employment we need to admit more, not fewer, workers.

Most of the credit for sustaining the growth in the economy goes to the activities of the Federal Reserve. The rest goes to American workers for producing the goods and services, plus spending their money for those goods, that, in turn, produces the profits, the incomes, the taxes, and the wealth that flows to and makes the wealthy happy. Believe otherwise, and you are a good candidate for believing that pigs can fly. Here is the unvarnished truth:

The Fed has kept interest rates low and the money supply flowing into the economy at a pace that has assured full employment and price stability—exactly what they are tasked to do. Even the small uptick in wages is an artifact of the Fed’s monetary policy. When the economy is at full employment and still growing, the economy produces jobs that cannot be filled. In the jargon of economics that means that the demand for labor exceeds the supply. That condition will always produce higher wages until new workers enter the labor market.

None of this is conjecture, or guesswork. It is Macro Economics 101, and every student of economics knows it. All the following data were taken directly from the Federal Reserve Economic Data accounts maintained by the Federal Reserve Bank of St. Louis at their website:

                           M1                     V1                GDP
Jan. 2017      $3.353  trillion  X  5.613    =  $18.820 Trillion
May 2019      $3.745  trillion  X  5.623    =  $21.059 Trillion

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 New GDP                                                   $2.239 Trillion                                          

Average annual GDP growth rate during the same time period: 2.85 %.

Discussion: V1 is the velocity or turnover rate of each dollar in circulation. GDP is the total value of all final goods and services produced in one year. Since January 2017, the Fed has increased the money in circulation from $3.3529 trillion to $3.7450 trillion, resulting in an annual economic growth rate of 2.85 percent.  The Fed made all the money in circulation available, while consumers spent it.

Thank yourself, all the employees who produced the goods and services, all consumers who first earned it, and then spent it. We can all thank the Fed for ordering the money to be printed, pay tribute to ourselves for spending it, and blame Trump for doing his best to stop those activities. His only contribution was to pass on all wealth to the offspring of the ultra-wealthy untaxed. Now his children can inherit his billions without the burden of having to pay any taxes on it—just like he has not done for most of his adult life.

Addendum: Trump needs to be banished from the halls of the White House and sent to the halls of his Golden Tower where he can watch the pigs fly by. With any luck they will leave many deposits for him to wallow in or to savor as he dreams of new ways in his golden years in which to carve out his true place in his private world of lies, delusion, and obstruction. We can label it now—the last refuge of scoundrels.