President Donald Trump has a strong economic record to highlight, characterized by low unemployment, rising real wages, and increased investment, according to Fox Business host Larry Kudlow and contributor Liz Peek. They argue that this narrative is frequently downplayed by liberal media outlets and that Republicans need to more effectively communicate these successes.
Peek noted that unemployment remains low, real wages are increasing, and the stock market is performing well, with investment booming. While acknowledging that inflation has been a concern and remains above the Federal Reserve's target, she pointed to a recent decrease in inflation and cited data suggesting it will continue to recede as oil prices stabilize. According to Peek, inflation, recently at 3.5% and 2.6% excluding food and energy, is significantly lower than the 4.95% average recorded during President Joe Biden's term.
Data from the conservative Committee to Unleash Prosperity reportedly shows that real incomes for the lowest 25% of earners increased by nearly $2,100 during the first 16 months of Trump's current term, in contrast to a decrease under Biden. Furthermore, the Bank of America Institute indicated that total credit and debit card spending saw a 6.3% year-over-year increase in June, representing the strongest growth in over four years. The Institute also reported a narrowing of gaps in wage and spending growth across different income groups.
Despite these reported positive economic trends, public perception remains largely pessimistic. A CNBC survey indicated that 61% of the public is pessimistic about the current state and future outlook of the economy. A Washington Post-Ipsos poll placed the president's economic approval rating at 33%. Peek attributes this disconnect to what she describes as the "incessant negativity of the Trump-hating media" and an inability by some Republicans to articulate the benefits of their policy agenda, such as lower taxes and reduced regulation.
Republicans are encouraged to promote initiatives like "Trump Accounts," deferred investment accounts for children. Over 6 million children have enrolled, with 1.4 million eligible for a $1,000 Treasury contribution. Dell Technologies co-founder Michael Dell, who contributed $6.25 billion to the program, stated that having even a small account positively impacts a child's outlook, influencing graduation rates, homeownership, and entrepreneurial endeavors.
Another initiative highlighted is the "TrumpIRA," a low-cost retirement account intended to offer all American workers retirement savings options similar to those enjoyed by federal employees. This program aims to address the lack of employer-sponsored retirement savings for a significant portion of the workforce.
Peek suggests that Republicans should focus on economic performance as the midterm elections approach, advocating for policies that could provide relief on issues such as housing costs. She proposed indexing capital gains tax on home sales to inflation as a measure to increase housing supply and noted that many older homeowners are deterred from selling due to tax liabilities.
The article argues that Democratic claims of Republicans benefiting only the wealthy are unfounded, citing features of the "Big Beautiful Bill" like an expanded child tax credit and standard deduction, along with "No Tax on Tips" and "No Tax on Overtime" provisions, which reportedly benefited millions of working-class Americans. Families earning between $15,000 and $30,000, according to the notes, saw the largest tax cut percentage, while the share of revenues from the top 10% of earners actually increased.