President Trump’s MAGAnomic Main Street policy initiatives surround a very basic set of principles. To add wealth to the middle class you: A.) increase wages, and B.) lower the cost of living.

Increasing wages is the long-term economic outcome from America-First business and corporate manufacturing policies (Secretary Wilbur Ross), in combination with fiscal policies (Secretary Mnuchin). Subsequently, within his economic agenda, President Trump visibly engages an extraordinary amount of effort on both Commerce and Treasury.

However, there’s a part of the plan for reestablishing middle-class wealth that also comes from lowering the cost of living (high consumables). That’s where EPA Administrator Scott Pruitt intersects with Ross and Mnuchin as Pruitt works to lower energy costs.

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Lowering energy costs has an exponential benefit to the overall economy. Not only does it drive down the cost of domestic highly consumable products, but it also binds the building blocks of the manufacturing and production sector. Lower energy costs offset higher wages on products manufactured for export and helps keep the U.S. competitive.

President Trump is uniquely qualified as a successful businessman (non-politician) to have developed actual life-skills on Main Street that help him see the bigger value in policy shifts. Politicians usually speak in esoteric terms about economic “costs”; but President Trump has direct experience in how shifts in costs can directly contribute to the Main Street economy.

Manufacturing and industry sectors have three top-tier costs as they transfer to Main Street: 1) Raw materials (or finished goods depending on sector); 2) Labor costs; and 3) energy costs. If you lower any of the three drivers you lower the cost of business operations.

President Trump is actually the only President in modern history who is working to lower both material costs and energy costs simultaneously. In doing so, the short term benefit to the middle-class worker is a lower consumable good prices and subsequently a higher level of disposable income.

In essence by lowering material and energy costs the internal economic action actually gives a raise to the middle-class faster than waiting for full economic expansion/growth to drive wage rates higher.

See how that works?

In the longer term, as the economy expands, there will be a natural pressure on wage rates to rise – as competition for labor drives up labor value. (*Note* immigration controls will also help this natural outcome considerably). But that end goal takes longer to achieve.

This fundamental MAGAnomic approach is what uncoupled the FED Reserve policy from their historic ability to influence the economy. As we have previously explained Trump is targeting all policy on Main Street. Lowering material costs (deregulation etc.), and lowering energy costs (full utilization of all energy assets), drives down domestic prices.

That reality is why the FED is perplexed and incapable of impacting inflation. Under all subsequent presidential policies the action was focused on economic control, and benefit, to Wall Street. Under Trump policy the short-term, and long-term, focus is to benefit Main Street.

Trump’s Main Street focus is lowering prices on the highly consumable sector of products (gasoline, oil, foodstuffs etc.), and all of the downstream domestic derivatives of that sector therein (transportation, plastics, restaurants etc). The MAGAnomic approach detaches FED fiscal policy from the ability to influence inflation on those consumables.

This is why we shared in 2015 and 2016 that Trump’s outlined approach would necessarily uncouple the FED fiscal policy from Main Street.

In addition to leveraging economic power for national security, Treasury Secretary Mnuchin and Commerce Secretary Ross are working on long term economic benefits: Trade renegotiation, exports, and investment along with capital/credit availability. Simultaneously EPA Administrator Scott Pruitt is working on short-term economic benefits: energy development, deregulation, etc.

You’ll note the primary beneficiary for the Trump MAGAnomic outcome is Main Street. Despite all opposition, and boy is there a great deal of opposition, President Trump is actually growing the middle class and lowering costs of living.

If only congress could remove the burden of ObamaCare it would be much much easier to see the bottom line benefits for the average U.S. worker. {{{spit}}}