Boom Phase of the Business Cycle

May 17, 2017

Scott Adams, creator of Dilbert, is out with a list of positive things in the economy since Trump became President. Adams is giving too much credit to Mr. Trump. The economy isn’t improving because of Mr. Trump or his predecessor Mr. Obama. Presidents actually don’t have a lot of power to improve the economy. They can reduce regulations which lighten the burden of government overreach. And presidents can veto congressional legislation which often strangles the economy. The economy is improving because of the Federal Reserve. Since the end of 2006, the M2 money supply has increased from $7 trillion to $13.2 trillion at the end of 2016. The economy is in the boom phase of the business cycle.