| Believe your own eyes, not the politicians. The numbers don’t lie: Despite statistics that pointed to decent GDP growth and low unemployment, poll after poll revealed widespread dissatisfaction with the nation’s economic conditions. One Harvard poll from before the election found that 62% of voters characterized the economy as weak. This disconnect between what the politicians say and what the people perceive calls to mind the famous Chico Marx quip from the movie “Duck Soup”: “Who ya gonna believe, me or your own eyes?” Well, as it turns out, you should believe your own eyes. A column by former U.S. Comptroller of the Currency Eugene Ludwig blows the lid off how the government calculates economic statistics, which he calls “fundamentally flawed.” Says Ludwig: Voter perception was more reflective of reality than the incumbent statistics. Our research revealed that the data collected by the various agencies is largely accurate. ... But the filters used to compute the headline statistics are flawed. As a result, they paint a much rosier picture of reality than bears out on the ground. Flawed data masks economic reality. Ludwing argues that government economic statistics “all shroud the reality faced by middle- and lower-income households” and that “those living in more modest circumstances have endured at least 20 years of setbacks.” Twenty years of setbacks! President Trump clearly has his work cut out for him as he tries to build an economy that will allow all Americans to thrive and get ahead. The irony is striking: Many of the same people who ignored the concerns of ordinary Americans during the Biden presidency — in favor of promoting a false narrative of economic prosperity — are now advocating for the repeal of the 2017 Trump tax cuts. Brace yourself for lies that tax cuts are only for the rich. This could not be further from the truth. Trump tax cuts brought real relief. These very tax reforms brought substantial benefits to middle- and lower-income Americans during the pre-Covid era. Consider the impact of the Trump tax cuts: - Family income increased nearly $6,000
- Wages rose fastest for low-income and blue-collar workers
- The bottom 50% of American households saw a 40% increase in net worth
Under Trump, the economy delivered results that resonated with the public. By the end of 2019, Americans’ confidence in the economy was at its highest in nearly two decades. A CNN report noted that “76% [of Americans] rate economic conditions in the U.S. today as very or somewhat good.” Animal spirits drive economic renewal. That surge in confidence during Trump’s first term reflected what economists call “animal spirits” — the human emotions that drive investment, entrepreneurship, and risk-taking. John Maynard Keynes described them as a “spontaneous urge to action.” The key ingredient to animal spirits is optimism, which is the lifeblood of a strong economy but is also fragile and easily undermined. Any uncertainty about the renewal of the Trump tax cuts could stifle these animal spirits at a time when Americans are beginning to feel hopeful about the future. Here’s the bottom line: The longer the process drags out, the more Americans will put off starting that new business venture. When Americans remain risk-averse due to an uncertain economy, prosperity stagnates. Here is how the National Federation of Independent Businesses characterized its January Small Business Optimism Index: “Small Businesses Remain Optimistic, But Uncertainty Rising on Main Street.” Keep families’ hard-earned money secure. That is why Congress must act swiftly to extend these tax cuts, ensuring families can keep more of their hard-earned money and maintain confidence in the economy. The House’s recent passage of the budget resolution is a critical step in the right direction. As AFP’s own Brent Gardner stated: “With families already struggling under the weight of rising costs and economic uncertainty, it is essential to preserve tax relief that allows them to keep more of their hard-earned money.” Let’s keep the momentum going. To sustain optimism and unleash the full potential of the American economy, Congress must act quickly to renew the Trump tax cuts. | 
