Context:

Mark Penn, a political strategist, advised President Trump on Fox Business to improve his unfavorable economic ratings by effectively communicating positive economic facts to the public. Current polling indicates that many Americans view the economy negatively, largely influenced by media perceptions rather than personal experiences. Penn emphasized that Trump's strategy should focus on altering public perception, similar to past instances with other administrations, where positive economic indicators were overshadowed by negative public sentiment. He noted that despite concerns over tariffs, consumer sentiment appears strong, supported by indicators like holiday spending plans, while Trump's economic policies may be fostering consumer confidence. Looking ahead, Penn suggests that a concerted effort to shift media narrative could enhance public perception of the economy.

Dive Deeper:

• According to an ABC News/Washington Post/Ipsos poll, a majority of Americans believe the economy has worsened since Trump's presidency began, reflecting significant discontent among voters.

• Penn pointed out that media coverage plays a critical role in shaping public perception of the economy, often outweighing personal experiences and leading to a disconnect between facts and public sentiment.

• He referenced his past experience with President Clinton, where a successful media strategy helped shift public opinion on the economy despite strong economic indicators, demonstrating a potential path for Trump.

• The Job Creators Network's CEO, Alfredo Ortiz, highlighted that consumer sentiment remains robust, as evidenced by a Gallup poll indicating Americans plan to spend an average of $1,007 on holiday gifts this season, suggesting confidence in economic conditions.

• Penn's comments come amid concerns about Trump's tariffs potentially increasing prices, yet consumer behavior appears unaffected, indicating resilience in spending and economic growth.

• Factors such as rising real wages, falling interest rates, and tax cuts are believed to contribute to a wealth effect, encouraging consumer spending and further economic activity.

• Penn's advice implies that Trump must pivot to a proactive communication strategy to counteract negative perceptions and regain favorable public opinion regarding the economy.