President Donald Trump was glowing Tuesday at the 50th anniversary celebration of the World Economic Forum in Davos, Switzerland despite the impeachment spectacle unfolding at home. He bragged about the Great American Comeback which he had predicted two years ago at the forum in 2018.
The glitzy affair attracts the world’s elite in business and politics. It has adopted climate change as one of its main themes and teenage activist Greta Thunberg was in attendance.
“Today, I’m proud to declare that the United States is in the midst of an economic boom the likes of which the world has never seen before,” said the president.
“We’ve regained our stride, we discovered our spirit and reawakened the powerful machinery of American enterprise. America is thriving, America is flourishing, and yes, America is winning again like never before,” he said.
He proudly reflected on the signing of two trade deals in one week: the China Trade deal and the United States-Mexico-Canada Agreement, calling them “the two biggest trade deals ever made.”
“These agreements represent a new model of trade for the 21st century — agreements that are fair, reciprocal, and that prioritize the needs of workers and families. America’s economic turnaround has been nothing short of spectacular,” said Trump.
More than 10% of S&P 500 companies have posted their latest quarterly results since the start of the year. Of those companies, 75% have posted better-than-forecast earnings. Stocks are also off to a strong start. Through 13 sessions, the S&P 500 has closed lower just five times and is up 2.8%.
He urged the gathering to “reject the perennial prophets of doom and their predictions of the apocalypse,” which he had to do in order to see his transformational vision of America’s economy begin to come into fruition. “Fear and doubt is not a good thought process. This is a time for tremendous hope and joy and optimism and action,” he said.
“I knew that if we unleashed the potential of our people, if we cut taxes, slashed regulations — and we did that at a level that’s never been done before in the history of our country, in a short period of time — fixed broken trade deals and fully tapped American energy, that prosperity would come thundering back at a record speed. And that is exactly what we did, and that is exactly what happened.” the president said.
Corporate tax cuts under Trump have correlated with increased hiring across the skills spectrum and sustained investment.
“Since my election, America has gained over 7 million jobs — a number unthinkable. I wouldn’t say it, I wouldn’t talk about it, but that was a number that I had in mind. The projection was 2 million; we did 7 million — more than three times the government’s own projections” said Trump.
“The unemployment rate is now less than 3, 4, and 5 percent. And at 3.5 percent, that’s a number that is the lowest in more than 50 years. The average unemployment rate for my administration is the lowest for any U.S. President in recorded history. We started off with reasonably high rate,” he said.
Trump can also take credit for a drop in the black unemployment rate which ticked up slightly in December to 5.9%, but stood at just 5.4% in August and is down from 7.5% at the start of Trump’s term in January 2017.
In August last year forecasters were predicting a 50 percent chance of a downturn starting by the end of 2020, but there is no sign on the horizon that this prediction will come true.