Jobs up, inflation down: Trump’s policies are working

Recent economic reports are painting a promising picture, showing a rise in new job creation across the country. Remarkably, as inflation, once stubbornly hovering above 2.5%, drops below that threshold, it’s evident that President Trump’s policies are starting to bear fruit.

Though it takes time for such initiatives to unfold fully, the results so far are certainly encouraging.

In January alone, the private sector added an impressive 172,000 new jobs. This surge in employment is a positive development, showing that businesses are gearing up for growth in the coming year.

Meanwhile, to combat excessive spending and a burgeoning deficit, the administration reduced the government workforce by 42,000 positions.

This move echoes findings from the Department of Government Efficiency (DOGE), which previously concluded that the federal workforce was excessively bloated, estimating that modernization could effectively cut it in half. Reflecting this trend, the federal government shed a total of 271,000 jobs last year.

The large number of new jobs created in January signals a revitalized private sector preparing to invest and expand. One significant policy change this year allows for total expensing of investments rather than long-term depreciation, further motivating businesses to invest in new plants and equipment. This change, implemented as of January 1st, was part of legislation passed last July.

Moreover, the trillions of dollars in foreign investment attracted by Trump’s administration are set to spur the construction of new factories and plants, generating the need for even more workers.

As a result, the unemployment rate has dipped to 4.3%. This promising trend raises concerns about potential labor shortages down the line. Thankfully, advancements in capital investment, particularly in Artificial Intelligence and robotics, could help mitigate any labor gaps that arise.

Beyond job creation, Trump’s policies have also curtailed inflation. His elimination of counterproductive regulations and his commitment to increasing energy supplies to dramatically reduce energy prices will continue to reduce inflation.

The president has skillfully wielded tariffs as a tool for national security and economic leverage. By threatening tariffs against nations reliant on their exports to the U.S., Trump effectively brought numerous long-standing disputes to a close and compelled all our trading partners back to the negotiating table.

Initially, many were resistant to negotiating existing agreements, yet Trump’s firmness led to fruitful discussions. The reality is that previous trade agreements were skewed heavily in favor of our partners, to the detriment of American interests.

The consequence of this imbalance was a shocking trade deficit approaching $1 trillion annually.

While the U.S. charged about 2.5% in tariffs on imports, other nations imposed tariffs on U.S. goods of 20%, 50%, or even 100%. This discrepancy put American products at a competitive disadvantage in global markets, leading to decreased international sales.

The introduction of tariffs served as an essential lever to rebalance trade and reduce the negative trade deficit. However, tariffs function similarly to a tax, and are an added cost that can contribute to inflation. Trump had promised to lower inflation, and so far, he has succeeded.

But how did the tariffs not result in higher prices for consumers?

Trump effectively managed expectations regarding inflation, helping consumers recognize that rising prices were not an inevitability. When shoppers observed prices for goods like eggs and groceries beginning to decline, they grew resistant to the idea of permanent inflation.

As a result, businesses are unable to pass along rising tariff-related expenses. While a portion of the tariffs did find their way to some consumer prices, primarily for niche products, most businesses somewhere along the supply chain absorbed the costs.

The long-term vision for Trump’s supply-side economic strategy is a thriving economy characterized by robust growth, full employment, and price stability.

The eagerly anticipated GDP growth number for the fourth quarter of 2025 is due soon, and early indications suggest it could easily exceed 4%. The third quarter already showed a growth rate of 4.3%.

The indicators are all pointing toward full employment, with the Consumer Price Index projecting an inflation rate below 2% by year’s end. With GDP growth continuing to surpass 4% with the potential for even greater expansion, it’s clear: President Trump’s economic policies are indeed working.

These achievements not only solidify his approach but also inspire optimism for the American economy and potentially a higher standard of living for all Americans.

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