In response to MAGA’s unorthodox economic policies that delivered big income gains and drove unemployment down to its lowest levels in almost 50 years, the Trump Administration has had to weather seven interest rate hikes based on the Federal Reserve’s orthodox economic theory that wage growth must be restrained to prevent future inflation.
The Fed had no problem slashing interest rates 19 notches early in the Obama Administration, and then keeping interest rates substantially below inflation in order to create asset bubbles that drove up U.S. rents and home prices. According to an EPI study, Incomes for the top 1-percent spiked to an all-time high average of $1,316,985 in 2015, a multiple of 26.3 times the average income for the other 99 percent of Americans.
While the Federal Reserve has been trying to protect the average American from too much personal income growth, its own Inflation Expectation Rate for the next five years has actually fallen by 20 percent since President Trump took office in January 2017.
Managing Director David Hoffman of Brandywine Global Asset that manages $74 billion recently observed that before the Fed raised the U.S. policy interest rate on December 19th and crashed the stock markets, the Fed Funds target interest rate when adjusted for inflation was already above zero. He warned that the Fed’s policy for the first time in a decade is “no longer broadly promotive of continued strong growth.”
The Fed and critics on both the left and right have fully embraced Keynesian economic theories that argue for government using “targeted” fiscal spending and monetary credit policies to steer the U.S. economy to optimum performance. With the top “1-percenters” controlling the bureaucratic deep state over the last 40 years, they have manipulated those Keynesian “targets” to optimally enhance their own incomes.
https://www.americanthinker.com/articles/2019/01/maga_first_real_us_household_income_gain_since_2000_.html
