OPINION| Lawrence David| U.S. employers added 273,000 jobs in February, sending the unemployment rate down to 3.5 percent, the government said Friday.
This exceeded forecasts for non-farm payroll growth by nearly 100,000.
Additionally, the numbers for December (+37,000) and January (+48,000) were revised upward by 85,000 more jobs.
Clearly, the American economy is chugging along, so why are the markets tanking? The Dow Jones Industrial Average reached its peak at 29,568 on February 10th. By this morning the Dow had shed 14.6% of its value.
How could this be?
The answer is because the market indices no longer reflect the strength of the U.S. economy.
Under former President Obama, the economy was largely centralized into large cap corporations with a global footprint. The Dodd-Frank Wall Street Reform Act tightened lending to small and medium sized start-ups and companies looking to expand.
As main street shrunk, and the health of the global economy became more synonymous with the health of multinational corporations and international banks, large cap corporations grew in importance.
Essentially, the American people were forcibly held hostage to globalism.
When Donald Trump became president he freed the small and mid-sized entrepreneurs by eliminating onerous and costly regulations, incentivizing tax cuts, and easing lending restrictions.
American ingenuity and America’s consumers did the rest.
While investors deal with the mayhem engulfing international markets because of the coronavirus outbreak, American consumers are spending away leading to massive job growth in the United States.
What we are really seeing is a microcosm of President Trump’s economic doctrine.