Democrats deliberately misdiagnose the Trump economy

OPINION:

To listen to Democrats, you would think the American economy — widely regarded as the most dynamic on the planet — is on the verge of disaster.

They portray a reality in which President Trump’s tariffs are set to send prices skyrocketing, the conflict with the Iranian mullahs is poised to collapse economic stability, and a recession is looming just around the corner.

Imagine the surprise when the latest inflation figures were released last week, revealing a more optimistic picture. Consumer prices posted a moderate year-on-year increase of 2.4% in February, significantly down from a staggering 9% peak under President Biden and the 3.3% rate we were confronting when Mr. Trump took office.

This substantial drop illustrates that inflation has calmed considerably during Mr. Trump’s tenure, directly contradicting Democratic claims that the tariffs would exacerbate the situation.

In their attempts to sway public opinion, Democrats have consistently argued that tariffs effectively function as a tax on American households. Their narrative has claimed that rather than engaging in fair negotiations, foreign nations would simply pass on the costs of tariffs to American importers, inevitably driving up prices for consumers.

The scary tactics didn’t stop there. Democrats warned that a second Trump term would resemble either the Great Recession or even the Great Depression. House Minority Leader Hakeem Jeffries, New York Democrat, boldly declared that Republicans supporting Mr. Trump’s trade policies “need to be thrown out of office and held accountable for the pain that they are intentionally inflicting on the American people.”

Yet the facts tell a different story. As the White House has highlighted, because of Mr. Trump’s tariffs, major U.S. trading partners — accounting for more than half of global gross domestic product — have committed to historic trade and investment agreements aimed at opening new markets for U.S. exports, promoting domestic manufacturing and ensuring reciprocity in trade relations.

Mr. Trump has adeptly wielded his tariffs to create fresh opportunities for American workers, ultimately stimulating the economy and helping rein in inflation.

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Job growth has consistently exceeded leftist expectations. In January alone, the economy added an impressive 130,000 jobs, almost triple some forecasts. More than 600,000 private sector jobs have been created during Mr. Trump’s second term, while average weekly earnings have increased by 4.3%, far outpacing the current rate of inflation.

Yes, it’s true that gas prices have been on the uptick recently, partly because of disruptions stemming from the conflict with Iran. However, prices remain largely in line with what they were at this time last year and are significantly lower than the $5 peak in 2022 amid another geopolitical crisis in an oil-rich region.

Through expanded U.S. oil drilling and natural gas production, as well as a firm stance against hostile petro-states such as Iran and Venezuela, Mr. Trump has strategically positioned the United States to better withstand oil shocks, including the one currently affecting the market.

The economic measures that Democrats have derided also have bolstered economic strength. By extending the tax cuts enacted in 2017, rejecting taxes on tips, reducing burdensome regulations and rolling back the Environmental Protection Agency’s overreach regarding carbon dioxide emissions, Mr. Trump has sent a clear signal to businesses: Now is the moment to hire, invest and expand.

The last time Democrats were in power, they attempted to micromanage the economy at the expense of American businesses and families.

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The Biden administration resorted to borrowing from our children’s future to spend trillions of dollars on various pet projects. It increased government expenditures by an alarming 22% and introduced $1.37 trillion in new regulations, further fueling inflation and stifling growth.

Moreover, the Biden administration targeted nearly every business in sight to penalize those providing much-needed consumer relief. The FTC v. Southern Glazer’s Wine and Spirits case stands out as a particularly egregious example. The government attempted to penalize a distribution company for daring to offer bulk discounts at retailers such as Costco.

At a time when inflation was rampant, rather than alleviating pressures, Democrats seemed intent on declaring war on discount pricing, which would have escalated costs further. Southern Glazer’s lawsuit remains open as Federal Trade Commission Chair Andrew Ferguson works to stop the war on bulk pricing.

It’s abundantly clear that Mr. Trump’s strategy is yielding results: lower taxes, streamlined regulations, a focus on addressing trade imbalances and a crackdown on frivolous lawsuits. In stark contrast, the Democratic strategy seems mired in endless complaints from representatives hailing from states such as California and Connecticut — regions that are persistently losing residents to more business-friendly areas.

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Mr. Trump should remain unwavering in his commitment to fostering economic growth and tuning out the Democrats’ incessant doom and gloom rhetoric, which has been proved wrong time and again.

• Michael Busler, Ph.D., is an economist, public policy analyst and professor of finance at Stockton University. He has written op-ed columns in major newspapers.