Midterm Voters: Are You Better Off Than You Were Two Years Ago?

-Source-Investors Business Daily- Midterm Elections: President Reagan won a landslide election in 1980 when he asked voters a simple question: Are you better off than you were four years ago? Voters knew they werent. Midterm voters should be asking themselves that same question now before casting their ballots next Tuesday. Only this time the answer is yes. The latest evidence: The Labor Department reported this week that private sector wages and salaries rose 3.1 in the third quarter of this year compared with last year. Total compensation which includes things like health benefits climbed 2.9. Both growth rates are significantly faster than two years ago. This was just the latest spate of good economic news. But there is plenty more. In fact by almost any measure the country is much better off than it was in November 2016. Heres a rundown: GDP Growth In the first three quarters of 2016 quarterly GDP growth was an anemic 1.5 2.3 and 1.9. This year quarterly GDP growth has been a far more robust 2.2 4.2 and 3.5. Jobs and Unemployment There are 4.3 million more private sector jobs than there were two years ago according to the Bureau of Labor Statistics. There are 1.8 million fewer unemployed. The unemployment rate is now 3.7 down from 4.9 where it had been stuck throughout 2016. Among blacks the unemployment rate dropped from 8.3 to 6 and among Hispanics its now 4.5. It was 5.7 two years ago. The average time people are unemployed is now 24 weeks down from 27 weeks just before the 2016 elections. Household Incomes Take-home pay for most people is higher today than it was two years ago for the simple reason that Republicans cut income taxes. Those savings started showing up when the new withholding schedules went into effect in February. And after stagnating for all 2016 median household incomes started to steadily rise. As a result median household income today is 4 higher than it was in November 2016 after adjusting for inflation according to Sentier Research. At $63007 median household income is at all-time highs. Investors Even with the recent volatility in the stock market the Dow is up by almost 42 since early November 2016. The broader S&P 500 index is up 31. And the Nasdaq Composite index is up 47. Optimism People are also far more optimistic today than they were two years ago. The Consumer Confidence Index was at 98.6 just before the 2016 elections. Today it stands at 137.9. To put that in perspective this index was at 100 in 1985 the year after Reagan won his landslide re-election. The IBD/TIPP Economic Optimism Index was at 51.4 in November 2016. The latest reading for this index is 57.8. Two years ago the IBD/TIPP Financial Stress Index stood at 56.3 anything over 50 signals stress. The latest reading for this index: 48.4. In other words the public is 12 more optimistic about the economy and 14 less stressed about their personal finances than they were two years ago. Business optimism is also far higher today than it was two years ago. Health Care Despite Democrats attacks on Republicans over health care the fact is that those enrolling in ObamaCare right now are better off than they were in November 2016. Two years ago enrollees faced average premium increases of 25 and declining choices. This year the average premium is down by 1.5 the first time thats ever happened under ObamaCare. Whats more individuals in some states have a new low-cost option that they didnt have two years ago short-term insurance plans that last a year. These plans dont have to comply with ObamaCares myriad benefit mandates and rating regulations. As a result theyre far cheaper. This strong across-the-board economic progress was not accidental nor was it inevitable as Obama would have voters believe. As weve noted in this space many times after eight years of underwhelming growth the economy was stagnating when Trump took office. Wages unemployment stocks household incomes all flatlined that year. And GDP growth was decelerating. Why Are You Better Off? The turnaround under Trump was not only unexpected but deemed impossible by Democrats who were trying to convince the public that 2 growth was the best this country could do.