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SOUTHINGTON – U.S. Senate contender Matt Corey (R-Manchester) says Republican President Donald Trump's election sent the stock market galloping and his recently-approved tax reform package will prompt small businesses to add "good-paying jobs."
The GOP contender added that if Congress again invokes the long-ignored Pay-As-You-Go controls the current annual budget deficit of $660 billion will dwindle under Trump's 10-year, $1.5 trillion fiscal plan.
However, he cautioned that Connecticut's sluggish economy, which is the only one among the six New England states to not recapture all of the jobs lost during the 2008 recession, needs to attract more high technology companies and online retailers – a daunting challenge in a state with clogged highways where "we can't move product and we can't move people easily" and there is an ambivalence in some municipalities toward high-speed rail.
Wilshire Associates reports that stocks rose 26 percent between the 2006 presidential election and the end of 2017, largely propelled by advances in tech stocks, according to Washington Post economics columnist Robert Samuelson.
Stock prices compared to their profits are about 24 on the index of the Standard & Poor's (S&P) 500 stocks compared to a historical average of 17 since 1936, reports Howard Silverblatt of S&P.
Corey, who is running for the seat held by first-term U.S. Sen. Chris Murphy (D-Cheshire), said he expects the market to continue to spiral upward, but acknowledged that with stock prices outracing income gains there could be a bubble that will lead to a recession.
However, Corey - the owner of a window-cleaning company that does business in cities throughout Connecticut and a pub in Hartford, said Trump's tax package will take the tepid recovery under former President Barack Obama and push gross domestic product growth closer to three percent than the recent two percent average.
"Consumer confidence is up," said the Republican contender regarding the president's tax reform, which has been the signature accomplishment of his first year and could become the Republican placard for the midterm congressional elections.
"You only have to look at what Amazon is doing," Corey, 54, added regarding the expansion of the huge Seattle-based online retailer. "If this is about job creation, we're on the right track."