Many so-called experts predicted that President Trump’s economic agenda would usher in an inflationary Armageddon. This projection was so often repeated in the media that many Americans, especially Democrats, believed a depression was imminent. Yet the economy is thoroughly beating expectations and consumers’ expectations are becoming increasingly optimistic.
Upon taking office again, Mr. Trump reiterated the economic policy goals that he laid out during the campaign: reductions in excessive taxation, burdensome regulations, and government spending, coupled with increases in tariffs and energy production.
This was labeled as some kind of toxic mixture. Thus far, though, it’s been an elixir for the American economy, which was suffering from inflation and a general malaise.
Consider that when Mr. Trump took office in January, inflation (as measured by the consumer price index) was running at an annualized rate of 5.7%, at which pace prices double in less than 13 years. With Mr. Trump back at the helm, however, inflation has averaged an annualized rate of just 1.4%.
