Obama & Trump Square out on Politics of Job Creation

According to the recently released report by the Bureau of Labour Statistics, the US added 178,000 jobs in November.

In addition, unemployment rate fell to the low levels of 4.6% which were last seen in 2007; a drop from 4.9% in October.

This comes as some of the last economic indicators that will be used to gauge Obama’s performance after eight years in the Oval Office. Although many would say the figures are manipulated and are not a true reflection of the actual economy.

Obama Trump politics jobs

The report was received with at the stock market with little immediate price movements since investors interpreted the data from the Bureau of Labour Statistics to be signaling an economic condition that is neither too hot nor too cold. The new jobs created were also within the range of 180,000 jobs analysts expected to be created in November hence explaining why there were not much price swings in stock market. With minimal margins being made through stock trading, some investors are now venturing into binary trading in order to maximize their returns as the stock market is expected to cool off further as we approach Christmas holiday.

With Trump having campaigned with the job creation card and won the hearts of millions of Americans, as Obama hands over the mantle, we expect even higher numbers of jobs being created in the US during Trump’s presidency. Steve Rick, chief economist at insurance company CUNA Mutual Group noted that “It looks like firms are pretty bullish about what they’re going to see in 2017 and are continuing their strong hiring of the past few years. This is a good tailwind for the new administration.” Trump’s spokesman Jason Miller seemed to mirror those positive sentiments by also noting that, “What we’re starting to see now is a new sense of optimism. This incoming administration is one that is going to fight even before formally taking office to keep American jobs.”

Trump has already working on his campaign promise of bringing manufacturing jobs back to the US from overseas and restarting the industries that had died due to transfer of manufacturing plant to other countries abroad. Early December, president elect Donald Trump closed a deal in Indianapolis with the heating and air conditioning company Carrier to help keep 1,100 jobs with the state. The company had planned to close a furnace plant in Indianapolis and move its manufacturing unit to Mexico. 800 of the 1,100 jobs are manufacturing positions and they were all going to be transferred to Mexico. Under the terms of the agreement, Carrier will be given a USD 7 million tax incentive package by the state of Indianapolis in order to invest USD 16 million in the plant within the state and keep the jobs home.

A few critics have however come out to speak against the incentives given to Carrier by Trump in order to keep jobs in the US. Dan Ikenson, director of the Herbert A. Stiefel Center for Trade Policy Studies at the Cato Institute, a libertarian think tank remarks that, “I think it sets a pretty bad precedent, I don’t think we should be addressing issues like this on an ad hoc basis. It certainly incentivizes companies to make a stink and say: ‘We’re going to leave, too. What are you going to do for me?’ ”

For starters, Donald Trump intervention in securing jobs for Americans within America even before he assumes power is commendable. Trump also declared that, “Companies are not going to leave the United States anymore without consequences. Not gonna happen. It’s not gonna happen.” Some analysts perceive his remarks positively since they reflect his commitment to his campaign promises. However, others think that this will be the beginning of an era whereby there will be unusual intervention by the White House into private enterprises. Whether the interventions are going to yield positive or negative results, we will wait and see starting January 20th 2017 when president elect Donald Trump gets to the Oval Office.