The new February jobs numbers are out, and they’re very good. The American economy added 235,000 new jobs last month, and the unemployment rate fell to 4.7 percent. Both numbers beat expectations.
Not only are the new statistics strong, there is a newfound sense of optimism in the American economy. From the New York Post:
The Labor Department said more people began looking for jobs in February, a sign of confidence that raised the proportion of Americans working or seeking work to the highest level in nearly a year.
The gains in hiring and pay, along with higher consumer and business confidence since the November election, could lift spending and investment in coming months and accelerate economic growth.
Average hourly pay rose 2.8 percent year over year in February, a decent gain though slightly below historical averages. In a healthy economy, wages typically rise at a roughly 3.5 percent annual pace.
Why is the economy beginning to show signs of life across the country? Because small businesses are optimistic about President Donald Trump’s policies. They believe he will cut taxes and decrease regulations, and thus far, Trump has kept his promises.
Rare reported last month that actions taken by Congress and President Trump have saved American consumers and businesses over $3 billion so far.
In addition, Trump is encouraging other sectors of the economy to expand. For example, the administration has opened up the entire Gulf of Mexico to oil and gas exploration, which is expected to create thousands of well-paying jobs in the Gulf Coast states. Energy is a big priority for the president: his White House is moving to expand its production in other parts of the country and repeal certain Obama regulations that hamstring the energy industry.
Cutting taxes is important to the Trump administration, too. The United States has the highest corporate tax rate in the industrialized world, and in some cases, American small businesses can be subjected to taxes even higher than that. President Trump has yet to announced his tax plan, but it is expected to push for deep cuts in the corporate rate and to create a special rate for “passthroughs” or LLCs, which make up a large portion of small businesses.
There are also Trump policies that could hurt businesses if they’re enacted. A trade war would be devastating and Trump’s hard-line approach to immigration could damage the American economy in the long-run.
Still, businesses are happy to have a president that doesn’t see them as the enemy. The entire economy is benefitting so far.