Trump vs Obama

Confidence

We’ve talked a few times about how much Trump’s election has inspired economic confidence, but we haven’t gone into the depths of how remarkable that really is.

Obama spent eight years fighting for a better economy, and his results were lukewarm at best. While there are many flaws one could mention in his policies, the biggest reason for his failure was the lack of confidence.

Americans, in general, never really believed in Obama’s economic visions, and that has been apparent in confidence reports and the general stagnation that has prevailed during his terms. The difference between an ineffective ruler and a great leader all boils down to the confidence they instill in their people, so let’s look at some of the what’s, how’s and why’s to see what we can learn.

Consumer Confidence

Consumer confidence slowed its increase in January, probably in part because of the formal transition between presidents and media campaigns against Trump, but they still remain higher than at any point during the Obama reign.

More importantly, Trump’s election spurred a spike in consumer confidence that grew faster and hit a higher peak than has been seen since before 2007. Tons of surveys have looked into why this has happened, and reports are varied and conflicting. The safe assumption is that Democrat fears are far outweighed by Republican optimism.

While the final report is still pending, this sentiment has led to a holiday shopping surge that is at least four percent higher than 2015 and likely set sales records. In short, media sabotage and false reporting has failed to convince America that Trump is going to be bad for the country, and the spending continued.

Other Votes of Confidence

Spending is only the beginning. Investor confidence is currently at an all-time high, and it is the cause of record stock markets. Regardless of what the masses think, Americans who are successful enough to invest are all betting on Trump, no matter which party they aligned with before the election.

In that same vein, income optimism has spiked, and Americans across the board are more hopeful than in recent history about earnings potential. Home builder confidence has hit its highest number since 2005, and NFIB reports the highest small business confidence index since 2004.

In every measurable way, the economy is full of optimism, and it all centers around Donald Trump. He caps the confidence boost with new levels of optimism in the military and among foreign allies. In every way, he is inspiring the people.

Why the Change

It seems odd, then, that the president who was elected twice on campaigns of hope never actually got people to believe in him, and the president who ran on a campaign of radical change has achieved a dramatic reversal in virtually no time at all.

It boils down to the differences we have discussed throughout this series. Obama appealed to ideals of what people wanted: healthcare for the poor, less international conflict and an economy that would recover from the crash. Those all sound great, but even in his first campaign he made it clear that his tactics would be to bludgeon America into submission through regulation and bureaucracy.

Trump has promised change too, but his promises have been radical. In a political climate, that’s usually dangerous, but his approach to implementation is where astute minds see potential. Trump wants to create change through deregulation. His goal is to let America fix itself by getting the government out of the way. Additionally, his tactics show ways to directly and rapidly move capital, so businesses in every market will have the resources to make change.

Really, it all comes down to faith. Despite nice words, Obama’s actions showed that he never believed in the American people. He assumed that small businesses would never elect to offer insurance when they could afford it. He overtly accused large corporation of dangerous levels of corruption and greed. He signed bills that effectively declared that lower-income Americans are incapable of being responsible for their own healthcare, and pushed a consistent narrative of a racist and violent America full of citizens that cannot be trusted. Obama expanded executive powers because he never trusted citizens to follow leadership and become a force of change.

It’s obvious that Trump could not be any more opposite, and his methodologies are built around empowering the people. Trump won’t make America great again. We will. More than anything else, it is that leadership that is getting such a positive response, and no matter how hard media outlets work to prevent it, people around the world can understand the new direction and they are reacting positively.

Regards, Ethan Warrick Editor Wealth Authority

http://www.wealthauthority.com/articles/trump-vs-obama-confidence/