The central theme of Democratic campaigns this year is that American capitalism doesn’t work for the working man, and so we need to replace it, or at least dramatically reshape our economy. These folks should take a look at the economic numbers that have come out in the past few days.
For starters, the headline numbers are amazing. Employers added 263,000 jobs in April, helping bring unemployment down to 3.7%, the lowest number in 50 years. Wages increased by an average of 3.2%.
These great topline numbers are not enough, though, to refute the naysayers and the revolutionaries. Since March 2009 (the bottom of the financial crisis), while the stock market has steadily risen and the economy has steadily grown, not everybody has seen this growth. The working class has mostly seen stagnation. The highest-educated counties have experienced basically all of the growth, leaving most of Middle America in decline.
This divergence in 2016 fueled both Bernie Sanders and Donald Trump. Hillary Clinton seemed happy to win and represent the “forward-looking” places and people, and to leave the deplorables behind.
And so here’s why this week’s economic numbers are so great: Clearly, at last, that the regular guy is gaining.
Americans without bachelor’s degrees (a standard definition of the working class) have just recorded their lowest unemployment rate in almost two decades. After years of neoliberal policy wonks and establishment politicians explaining that the working class will have to be happy with a generous safety net and cheaper Chinese goods, recent numbers show that an economy for the working man is possible.
Hispanic unemployment also hit the lowest level ever. While the Left has been arguing that the Trump administration and capitalism both crush racial minorities, the economy has been lifting up minorities more than any identity politics thought policing or reparations ever could.
Manufacturing wages were up 2.9% year over year, the greatest rise since 2003.
We don’t think Trump deserves all the credit. Presidents do not actually control the economy. But Trump certainly deserves some credit.
Republican tax cuts have created a more open and level playing field where investment more freely chases economic opportunity, rather than tax arbitrage. Deregulation has similarly unfettered business. Trump’s embrace of fracking has juiced the economy as well.
In other words, Trump has gotten government out of the way, for the most part. In turn, American energy and enterprise has created a rising tide that is lifting all boats.
