The Last Refuge
March 2, 2018
MAGAnomics baby!! Throw dem ju-ju bones out the windows and hold on to your britches… The U.S. Dept of Labor is reporting unemployment claims have dropped to 210,000. That’s the lowest jobless number since December 6th, 1969.
You know what this means right?
…wait for it.
…wait for it.
That’s right. We better grab chin straps for the hard hats, because pay raises and wage rate increases are thundering toward the middle-class like an unstoppable herd of buffalo. Exactly on schedule. Cha-ching & Ka-pow.
This has been the plan within very-stable-genius Trump’s MAGAnomics all along.
Take-home paychecks are already seeing the benefits of lower tax rates for the middle-class. The mid-size employers are simultaneously benefiting from lower corporate tax rates. This means the employers can afford to pay more…. and right on cue, the labor market says ‘show me the money‘.
We timed this out to appear in Quarter #2 2018: More take-home pay, PLUS a pay raise, EQUALS the ability to afford slightly higher consumer prices (Q4) on durables. See how that works?
The January 2018 jobs report showed a gain of 200,000 U.S. jobs, and more importantly, a 2.9% year-over-year growth in wages. –SOURCE– [Biggest wage rate jump since the phoney trillion stimulus-funded growth mid-2009.] We continue to remind of our two-year prediction that stunning wage growth will evidence in Q2 of 2018 (April-July)… these wage and labor reports preview that wage growth cycle.
Construction reported by the biggest gain by sector with 36,000. Bars and restaurants added 31,000 and health care was up 21,000. Manufacturing also showed a gain of 15,000 and durable goods-related industries added 18,000.
“Perhaps the biggest positive surprise on hiring is the continued surge for the goods-producing sector with manufacturing and construction leading the way,”…