The latest economic data shows surprising strength in the American economy, contradicting the pessimistic narratives often presented by commentators. According to a report by The New York Times, the Gross Domestic Product (GDP) surged at an annual rate of 4.3 percent between July and September, a noteworthy increase from the 3.6 percent growth observed in the previous quarter. This robust performance underscores the vitality of consumer spending, which comprises around 70 percent of economic activity and rose by 3.5 percent during the same period.
Even the left-leaning Times acknowledged this resilient growth amidst a challenging economic climate, highlighting the stark contrast between the prevailing negative sentiment and the unexpected economic advancement. The article stated that the economy began October on solid ground, defying the bearish forecasts made by some experts just months prior. Such findings challenge assumptions about consumer confidence and job market stability, presenting a more complex picture than the doom and gloom predictions suggest.
Bret Kenwell, a U.S. investment and options analyst at eToro, captured the discrepancy between expectations and outcomes. He remarked, “While worries surrounding the jobs market, tariffs and inflation continue to swirl, the economy continues to defy its doubters by chugging higher.” This statement reflects the growing divergence between market pessimism and actual economic indicators.
The news prompted a swift response from former President Trump, who took to Truth Social to celebrate the GDP results. Trump attributed this economic success to tariffs, asserting, “The TARIFFS are responsible for the GREAT USA Economic Numbers JUST ANNOUNCED… AND THEY WILL ONLY GET BETTER!” He also emphasized the absence of inflation and the importance of national security, illustrating a broader message of confidence in his economic policies.
In the context of this economic boom, economist Larry Kudlow voiced optimism that the economy could attain even higher growth rates. In an Op-Ed piece for Fox Business, he asserted that the Trump economic framework—characterized by supply-side tax cuts, deregulation, and fair trade—could potentially yield a remarkable 5 percent GDP growth. Kudlow’s assertion is based on expectations of large business investments and positive trends in oil prices, which could drive inflation rates down as well.
His comments reflect a belief in the long-term potential of Trump’s economic approach. Kudlow remarked, “Trump’s shock and awe reimagination and rejuvenation of a new capitalist path to prosperity is right now completely underestimated by everybody. Friend and foe.” This perspective emphasizes not just the successes seen so far but also anticipates substantial future growth driven by policy choices made during Trump’s administration.
The data indicates a growing sense of resilience within the U.S. economy, suggesting that positive news may continue to surface despite the shadow of economic concerns. With consumer spending strong and expert predictions pointing towards further growth, the narrative of a struggling economy could be in for a significant re-evaluation.
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