Investment Up, GDP Down & Drill, Baby, Drill | 5.1.25

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Morning Wire 14 min 9 speakers 7 chapters transcribed
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Why is inflation dropping while investment is rising?

Georgia Howe 0:04
Inflation drops, but so does gross domestic product.
John Bickley 0:07
Will U.S. investment be able to reshape the U.S. economy?
Georgia Howe 0:10
You have 3% growth, so we really like where we're at now. I'm Georgia Howe with Daily Wire executive editor John Bickley. It's Thursday, May 1st, and this is Morning Wire.
John Bickley 0:29
Trump vowed to drill baby drill to make America energy independent. We go on location with Interior Secretary Doug Burgum, who's making good on Trump's promise. We're going to mine baby mine so we can build baby build.

What does Trump's 'Drill, Baby, Drill' promise entail?

Georgia Howe 0:41
And China is quietly backing off on some tariffs, but slams the brakes on U.S. farm orders.

How is the China trade war affecting U.S. farmers?

Unidentified Speaker (Brief Interjection) 0:48
We're fully committed to raising pork, not only domestically, but globally.
John Bickley 0:53
Thanks for waking up with Morning Wire. Stay tuned. We have the news you need to know. Support American farmers and ranchers today and make a positive impact while avoiding increasing costs and uncertainty from tariffs. At GoodRanchers.com, they deliver 100% locally sourced American beef, chicken, pork, and more straight to your door. And with their pre-trimmed cuts, you cook more of what you buy. That means more value out of every juicy steak, chicken breast, and more. Lock in a secure supply of American meat at a steady price today. Subscribe now at GoodRanchers.com and get free meat for life and $40 off with code WIRED. Good Ranchers, American meat delivered. American investment is surging despite turmoil around Trump's tariffs and the GDP slightly slipping.

What are the latest economic indicators telling us?

Georgia Howe 1:41
Joining us to lay out the data is Daily Wire reporter Mairead Elordi. So Mairead, how are economists interpreting this latest data?
Mairead Elordi 1:49
Hi, Georgia. So there's a lot of catastrophizing going on right now around the economy. The GDP shrank by 0.3% in the first quarter and the Dow dropped about 200 points yesterday at that news rate. But if we dig into the numbers a little bit, the truth is that the data is mixed and there are actually some significant positives in the latest numbers. During President Trump's Wednesday cabinet meeting, which was broadcast live, Trump and other administration officials poked holes in the media's narrative about the economy. Trump said they are turning Biden's economy around and explained that core GDP is actually up.
Peter Navarro 2:22
That's Biden. That's not Trump. I was very against everything that Biden was doing in terms of the economy destroying our country. But we took over his mess in so many different ways. Core GDP, removing distortions from imports, inventories and government spending. was up plus 3% when you add it. We had numbers that despite what we were handed, we turned them around.
Georgia Howe 2:49
So the Trump administration is feeling somewhat positive. How are they responding to critics?
Mairead Elordi 2:54
Well, White House Trade Advisor Peter Navarro broke down how the administration crunched the numbers. And he said, we really like where we are at now when it comes to the economy.
Jane Doe 3:03
The Trump program, with the deregulation, with the tax cuts that's coming, which will be retroactive to January, which will allow complete expensing, it surged like, what is it, 22%. 22%. And consumption, despite the soft data with the confidence being down, consumption has been robust. So that number's a really good number when you sort out all of that stuff.
Georgia Howe 3:35
And we should be celebrating Trump policy and that number. Now, we've also heard the Trump administration say that more companies are coming back to U.S. soil. What do we know about that?
Mairead Elordi 3:46
Well, that's also another thing the media is downplaying, the surge in domestic investment in response to the tariffs. Here's Navarro again.
Jane Doe 3:53
The markets need to, like, look beneath the surface of that. We had a 22 percent increase in domestic investment. That is off the charts.
Mairead Elordi 4:03
In that same cabinet meeting, Commerce Secretary Howard Lutnick laid out details about how another semiconductor company, which is the main chip supplier for Apple, is building a major manufacturing plant in Arizona. Here's Lutnick.
Howard Lutnick 4:15
So they're investing $165 billion in 1,100 acres in Arizona, and they're building the highest-tech chip manufacturing semiconductors, and 4,000 employees. You know, American tradecraft. technicians doing every kind of work, the classic foundation of America.

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