The president’s State of the Union address had its share of hidden messages in its political DNA. Mr. Trump gave Nancy Pelosi the snake-eye treatment, and he didn’t shake her hand when he reached the podium. Nancy shook her head and showed her disdain for Trump during the speech, and several Democratic lawmakers ghosted the president’s SOTU performance. But the president base was active, supportive, and ready to rumble to protect their leader.
Speaker Pelosi let the president know what she thought of his speech when she ripped it to shreds after he finished. Mr. Trump’s speech let Americans know the country turned a corner during his three years in office.
Trump said the economy is on fire, pay is up, and more people have jobs. Plus, the president let his voter base know his decision to send Iran’s military leader to his maker, and his tariff wars, as well as the recently signed USMCA agreement with Mexico and Canada, show his foreign policy decisions protect and enhance the way of life for middle-class Americans.
Trump’s economy seems strong, but there are problems under the economic hood. The bond yield curve inverted again, and consumer spending is not as strong as it was before the trade war started taking money out of consumers’ pockets. The stock market appears strong, but financial experts claim there’s too much hype in prices thanks to the president’s ability to control the financial decisions made by some investors. Hedge fund managers see the economic erosion in Germany, France, Italy, and the U.K., and they know that erosion will impact U.S. GDP growth in 2020.
The coronavirus will also take a toll on America’s GDP growth, and the tech war with China will continue to push the two nations apart. China expects its GDP growth to drop below 6.0% in the first quarter due to the virus, and the battle to keep its tech companies’ solvent while Mr. Trump tries to bring Huawei and ZTE down.
Manufacturing numbers improved in January, but the construction sector continues to decline. Even though the economy grew by 2.1% in 2019, economists expect U.S. GDP growth to slip below 2.0% in 2020.
The Chinese continue to inject billions of yuan into their faltering economy. And the Chinese want the U.S. to agree not to punish them for not adhering to the phase one agreement until the government stops the spread of the virus.