Democrats failed to create manufacturing jobs at the rate Trump did and they thought it impossible
The Trump Manufacturing Jobs Boom: 10 Times Obama's Over 21 MonthsKrugman has been wrong about the Trump economy from the very beginning of the administration. If he believed what he said he should have shorted the market before it took off to new highs. What seems clear is that Democrats do not know how to grow the economy at this rate. They are too wedded to control freak regulations and inefficient energy policies. They are also too wedded to high taxation which destroys investment opportunities and instead focuses on creating dependency.
At a town hall in June 2016, President Obama famously said that some manufacturing jobs “are just not going to come back.” He went on to mock then-candidate Trump by saying he’d need a “magic wand” to make good on this manufacturing job promises.
Months later, as the shock of a President-elect Donald Trump was still being absorbed, New York Times columnist and economist Paul Krugman tweeted on November 25, 2016, “Nothing policy can do will bring back those lost jobs. The service sector is the future of work; but nobody wants to hear it.”
Well, a funny thing happened—Trump’s policies, and just as importantly, the expectation of Trump’s policies, ignited a manufacturing resurgence.
In the first 21 months of the Trump presidency, nonfarm employment grew by a seasonally adjusted 2.6%. In the same period, manufacturing employment grew by 3.1%, reversing the trend under Obama when overall employment grew faster than employment in the manufacturing sector.
Comparing the last 21 months of the Obama administration with the first 21 months of Trump’s, shows that under Trump’s watch, more than 10 times the number of manufacturing jobs were added.
Three things likely sparked this manufacturing jobs spike.
First, eight years of the Obama Administration’s piling on regulation upon regulation, from labor rules, to the Clean Power Plan, to the implementation of ObamaCare, placed industry into a defensive crouch. Business leaders were fearful of investing capital, not knowing how the federal rules might capriciously change, thus wiping out their expected return on investment.
That defensiveness ended in November 2016 when the expectations of additional regulatory burdens under a prospective President Clinton vanished. Not coincidentally, manufacturing employment started its sustained upswing the very month of Krugman’s tweet.
Second, the Trump Administration’s deregulatory practice exceeded expectations, with red tape being cut at a faster clip than achieved under President Ronald Reagan 36 years earlier.
Third, with the Republican Congress, President Trump delivered on a major overhaul of the tax code, including a significant cut to business taxes as well as a change to the treatment of overseas profits that incentivized the repatriation of some $300 billion in the first quarter of 2018 out of what the Federal Reserve estimates is $1 trillion in multinational profits held abroad.