New York Times Stuns World with Positive Story on Economic ‘Trump Effect’

Has a new year brought on a new New York Times? That is the question some are asking after the decidedly anti-Trump newspaper published a positive story about the president on Tuesday.

The story, titled “The Trump Effect: Business, Anticipating Less Regulation, Loosens Purse Strings,” argued that the president’s policies are going to create jobs and cause economic growth.

“A wave of optimism has swept over American business leaders, and it is beginning to translate into the sort of investment in new plants, equipment and factory upgrades that bolsters economic growth, spurs job creation — and may finally raise wages significantly,” the story, written by Binyamin Appelbaum and Jim Tankersley, began.

The Times contended that, with the president and Republicans lowering the corporate tax rate from 35 percent to 22 percent, businesses are more optimistic about the future.

With tax cuts coming and a generally improving economic outlook, both domestically and internationally, economists are revising growth forecasts upward for last year and this year.

Even before it became clear that Republicans would pass a major tax cut, capital spending had risen significantly, climbing at an annualized rate of 6.2 percent during the first three quarters of last year. Surveys of planned spending also show increases.

And with the president eliminating regulations it is getting better.

In the administration and across the business community, there is a perception that years of increased environmental, financial and other regulatory oversight by the Obama administration dampened investment and job creation — and that Mr. Trump’s more hands-off approach has unleashed the “animal spirits” of companies that had hoarded cash after the recession of 2008.

Some businesses will essentially be able to get away with shortcuts that they could not have under a continuation of Obama-era policies. The coal industry, for instance, will not have to worry about a regulation, overturned by Congress and Mr. Trump, that would have protected streams from mining runoff.

“It’s an overall sense that you’re not going to face any new regulatory fights,” Granger MacDonald, a Texas home builder, told the Times. “We’re not spending more, which is the main thing. We’re not seeing any savings, but we’re not seeing any increases.”

And the optimism is not limited only to the United States. Countries across the globe are riding the wave and experiencing growth.

The world’s major economies all are growing for the first time since the financial crisis. Confidence among European manufacturers hit a high in more than a decade, according to European Commission data that goes back to 1985, even without tax cuts or less regulation.

In Japan, now in the middle of its longest period of growth since the early 1990s, the central bank said corporate investment was exceeding its expectations, and it raised its forecast.

“The fundamental backdrop here is that this is a global synchronized expansion lifting everyone’s spirits, from Tokyo to New York,” Moody’s Analytics chief economist Mark Zandi said. “The entire global economy is on one page for the first time in over a decade. We’re all moving in sync and that has everyone feeling good, not just here but across the globe.”

The story came on the same day that President Trump said the Times had its “last chance” at saving itself as a new publisher has taken over.

The stunning part is not the facts that were used in the story. These are predictions that supporters of the president have been making for more than a year.

What had many shocked is that the story appeared in The New York Times. And they expressed their surprise on social media.