Must-See TV Markets are hoping Trump can produce a new reality show. By James Freeman
https://www.wsj.com/articles/must-see-tv-1488319885
Turns out the last full quarter of the Obama economy was just as lousy as we thought. This morning the government reported that GDP grew at the same sluggish 1.9% rate in the fourth quarter as previously estimated. Business investment was even worse than expected, and this news comes on the heels of Monday’s disappointing report on durable goods orders for January. This raises the hope that at least we won’t have to hear any more about the allegedly beautiful economy that President Obama has bequeathed to his successor. But it underlines the need for President Trump to show tonight that he’s going to deliver on his promises of economic growth.
Markets have been on a tear since Election Night, with the Dow up nearly 14% through Tuesday’s close. This is based on Mr. Trump’s promises to reduce the burden of taxes and rules imposed by Washington. For years prior to his election, markets were rising thanks in large part to historically low interest rates engineered by the Federal Reserve. But investors and businesspeople didn’t really believe Washington could manufacture prosperity. So big companies borrowed at low rates and then used the money to buy other companies or buy back their own stock or just sat on cash instead of investing in new equipment. This lack of investment meant we never got the productivity gains that make us all richer. Mr. Trump has made business operators more optimistic but it’s not clear he’s yet changed their behavior.
When he addresses a Joint Session of Congress tonight, job creators need to see Mr. Trump’s best-ever reality show—a plan to move from the unreality of Washington economic management to a real market where stocks rise because of robust growth in sales and profits. CONTINUE AT SITE
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