The Bureau of Economic Analysis (BEA) announced that over $300 billion was repatriated to the United States during the first quarter of 2018, setting a new record.
Businesses are taking advantage of the tax reform law, as well as President Trump’s strong focus on protectionist trade, by bringing their overseas profits to America rather than investing it overseas.
By comparison, only $38 billion was repatriated to the United States around this time last year, Fox Business reports.
This news comes on the heel of other positive economic news, providing President Trump and Republicans with an opportunity to score some easy points with voters ahead of the midterms. The most recent data available shows that unemployment dropped to 3.8% in May, an 18-year low that was below market expectations, as employment rose by 293,000.
Also, economic growth has been chugging along nicely at a pace of 2.2% in the first quarter of 2018 and many analysts expect economic growth to pick up in the second quarter of 2018.
All of this good news about our economy comes as the mainstream media and inside-the-beltway think tanks warn about a so-called “trade war” wrecking the economy. For example, the IMF and CNBC recently drew comparisons between Trump’s economic policies and the Great Depression.
Politico warned that “Trump’s trade battles with Mexico, Canada, the European Union and China could wind up increasing costs for consumers while destabilizing markets and global supply chains.”
The Bank of America and CNN Money warned that a “major global trade confrontation would likely push the US and the rest of the world to the brink of a recession.”
Cato, a Koch-funded libertarian think tank, recently asked “when will consumers feel the pinch from Trump’s escalating trade war?”
The Chamber of Commerce warned that Trump’s trade policy will spark retaliations, which in turn “will have serious negative economic impacts on the United States.”
Yet despite all of these dire predictions, warnings, and kvetching from the mainstream media, international organizations, beltway think tanks, and corporate lobbies, the economy has been chugging along nicely, proving, perhaps once and for all, that economic nationalism works even when political elites try their best to sabotage it.