Economy and attitude

Between 2010 and 2018 the number of people working in the US increased from 112 million to 127 million yet the labor participation rate held steady at just under 63%. This means that many who had stopped looking for work re-entered the work force. This growth is a continuation of what started during the Obama years with one major addition and that is attitude. Many of those who felt they were not getting ahead have changed their minds and consumer confidence continues the climb that started in 2010. Confidence has steadily climbed since the recession and has repeatedly reached multiyear highs over the past year. Factors driving the increase include a sharp run-up in the stock market last year, strong job growth, modest inflation and rising property values. Also, a tax-cut package passed by Congress late last year has boosted Americans’ take-home pay this spring. Presidents have little to do with the economy except in one area and that is confidence. Trump the salesman is constantly selling growth and this is affecting the way many people see the economy. Optimism is catchy.