Fresh figures show the US economy is firing on all cylinders while Britain flounders. The latest data from Washington shows US GDP jumped by 0.7% in the second quarter, or 3% a year if that monthly pace continues across the year, blowing past forecasts of 2.4%.
Either way, that’s a stellar number. It smashes forecasts and puts the UK’s sorry performance in the shade.
In contrast, our economy shrank by 0.3% in April and 0.1% in May. All signs suggest a second-quarter contraction. While US consumers have money to spend, Brits are counting the pennies as the cost-of-living crisis drags on and on.
US inflation is down to 2.1%, according to today’s the personal consumption expenditures index. In the UK, it’s still stuck at 3.6%.
The US did have a shaky start to the year, with GDP falling by 0.5% in Q1. But that was mostly down to US companies and consumers rushing to import goods before Trump’s tariffs kicked in, hitting the balance of trade.
Now, growth is bouncing back. In the UK, it’s the opposite. Rachel Reeves’s punishing tax hikes are hammering growth just as we need it most.
What a contrast.
Experts warned that Donald Trump’s tariffs would crash the US economy. The opposite seems to be happening.
America’s trade deficit is shrinking, foreign companies are scrambling to set up operations in the US, and growth is back with a bang.
Boosted by tariff revenuess, the Federal budget actually slipped into surplus in June. By contrast, Reeves borrowed a staggering £20.7billion.
Trump’s approach may be crude, but it’s delivering.
His display of brute force has shown supposedly tough EU negotiators to be paper tigers, and they’re not the only ones caving in on trade deals.
While Trump pursues results, Reeves and Keir Starmer appear more focused on cowering behind international law, and selling out the UK at every turn.
And instead of encouraging businesses to grow they are burying them under an ever rising tide of taxes.
Trump’s headline-grabbing style draws critics, but behind the noise there’s a flurry of activity. He’s made his 2017 tax cuts permanent and scrapped taxes on tips, overtime and Social Security.
He’s poured money into defence, hitting recruitment goals ahead of schedule. His Supreme Court wins have given the White House more policy power. And he’s slashed illegal crossings to the States while the small boats keep bobbing across the English Channel.
Trump boasts of helping to end conflicts between Iran and Israel, India and Pakistan and Congo and Rwanda, while forcing NATO allies to hike defence spending. He’s finally arming Ukraine but with European money, not US taxpayer cash.
It may not suit us – but it suits him. And the US taxpayer.
When Trump landed in Scotland, he told Starmer to cut taxes, stop the boats, and drill for oil and gas. Basic stuff. Fat chance of Labour doing any of that. The Tories failed to deliver. Now Starmer and Reeves are doubling down on decline.
The hard truth is this: Trump is doing what he promised and it’s paying off.
Reeves and Starmer are doing the opposite and the UK is sinking. While Trump shakes up the US, Britain has four more years of failure ahead of us.