|Unleash Prosperity Hotline|
|1) Still Bullish On The Operation Warp Speed U.S. Economy Boom|
We’re still persuaded that the reopening of the U.S. economy and the end of COVID, presages a big boom for the rest of the year. The lousy jobs report for April was a setback – but only driven by dumb Biden-Pelosi policies of paying people not to go back on the job, which are working like a charm.
The big story is the astonishing V-Shaped recovery which began in July of last year after the red states began opening up their economies. (Is there any doubt that if Biden or any Democrat had been in the White House last year, they would have catastrophically shutdown the entire U.S. economy, and all of America would be hobbled today with 8% unemployment like New York and Illinois?)
The latest Atlanta Federal Reserve Bank of Atlanta GDP Now report estimates that (even with the bad jobs report on Friday) we are on pace for a blowout 2nd quarter GDP number of 11%. See chart. This means that by July America will be 100% recovered economically – an amazing feat given the severity of the pandemic.
The Federal Reserve Board, the Congressional Budget Office, and almost all of the private forecasters had this comeback story under Trump dead wrong. The Fed predicted 9.3% unemployment for the end of last year, while the actual rate fell below 7%. The CBO crystal ball-gazers didn’t see the unemployment rate hitting 6% until 2023 – two years from now – when in fact we hit 6% in February.
We agree with our CTUP original co-founder Larry Kudlow who advises that the only thing that could possibly derail this big rebound would be $4 trillion of added government spending and the $2.5 trillion tax hike to pay for it. Biden proclaimed over the weekend that the bad jobs report only confirms that we need his Green New Deal “infrastructure bill,” and as usual he has it completely backward.
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