{"id":34907,"date":"2018-12-10T13:13:23","date_gmt":"2018-12-10T18:13:23","guid":{"rendered":"http:\/\/www.rightwinggranny.com\/?p=34907"},"modified":"2018-12-10T13:13:23","modified_gmt":"2018-12-10T18:13:23","slug":"the-economy-under-president-trump-2","status":"publish","type":"post","link":"https:\/\/www.rightwinggranny.com\/?p=34907","title":{"rendered":"The Economy Under President Trump"},"content":{"rendered":"

I am not an economist, but I have learned over the years to listen to the people with the best track records on analysis. One of those people is Stephen Moore, who posted an article at The Wall Street Journal<\/a> yesterday.<\/p>\n

The article reports:<\/p>\n

Liberals are tripping over themselves to explain why the economy has performed so much better under Donald Trump than it did under Barack Obama. The economy has grown by nearly 4% over the past six months, and the final number for 2018 is expected to come in at between 3% and 3.5%. The U.S. growth rate has doubled since Mr. Obama\u2019s last year in office.<\/strong><\/p>\n

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When Mr. Trump was elected, many Democratic pundits predicted an economic and stock-market meltdown. Then the economy started surging and they abruptly changed their tune, arguing that Mr. Trump was simply riding a global growth wave. That narrative was shattered when U.S. growth kept steaming ahead even as global growth\u2014especially in China and Germany\u2014stalled.<\/strong><\/p>\n<\/div>\n

The people who predicted an economic crash if President Trump was elected are now saying that the tax cuts have given us a ‘sugar high’, and the market will crash when the sugar wears off. That makes about as much sense as President Obama taking credit for the move toward American energy independence.<\/p>\n

The article continues:<\/p>\n

The real contradiction in the \u201csugar high\u201d argument is that it ignores the slow growth of the Obama years, which featured an avalanche of debt spending. Deficits as a share of GDP <\/a>were 9.8% in 2009, 8.6% in 2010, 8.3% in 2011 and 6.7% in 2012. Where was the sugar high then? Instead of the expected burst in output coming out of the 2008-09 recession, borrowing more than $1 trillion a year for four years yielded the worst recovery since the Great Depression. Even excluding 2009, Mr. Obama\u2019s deficits averaged more than 5% of GDP throughout the rest of his presidency but produced less growth than Mr. Trump has with lower deficits.<\/strong><\/p>\n

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This wasn\u2019t what Keynesians expected. Mr. Obama\u2019s economic team predicted 4% growth every year coming out of the recession. Instead the \u201csugar high\u201d from record peacetime deficits produced measly 2% growth. By 2016 GDP was running about $2 trillion below the trend line of a normal recovery.<\/strong><\/p>\n

The fastest growth rate over the past three decades was recorded in Bill Clinton\u2019s second term, when federal government spending fell from 21.5% to 18% of GDP and deficits disappeared into surpluses. So much for the idea that deficit spending is a stimulant.<\/strong><\/p>\n

Mr. Trump\u2019s fiscal policies have produced more growth than Mr. Obama\u2019s because they were designed to incentivize businesses to invest, hire and produce more here at home. The Obama \u201cstimulus,\u201d by contrast, went for food stamps, unemployment benefits, ObamaCare subsidies, \u201ccash for clunkers\u201d and failed green energy handouts.<\/strong><\/p>\n

The article concludes:<\/p>\n

Those pushing the \u201csugar high\u201d fallacy also don\u2019t realize that the Trump tax cuts aren\u2019t going away soon. The 2017 business tax cuts can\u2019t cause a recession in 2019 or 2020 because they don\u2019t expire until 2025. They aren\u2019t sugar pills.<\/strong><\/p>\n

The biggest threats to the economic boom and financial markets today are a deflationary Federal Reserve and the specter of a global trade war. Solve those problems and the American economy can keep flying high on its own power. And Mr. Trump\u2019s critics will be proved wrong again.<\/strong><\/p>\n

When you decrease taxes and regulations on businesses, we all gain. That combination, if allowed to continue, will bring us continued economic growth.<\/p>\n","protected":false},"excerpt":{"rendered":"

I am not an economist, but I have learned over the years to listen to the people with the best track records on analysis. One of those people is Stephen Moore, who posted an article at The Wall Street Journal … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[9804,383,3174,3428,7069,172,364,10589,11293,6106,1419,11137,437,8401,238],"class_list":["post-34907","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-american-economy","tag-american-energy-independence","tag-bill-clinton","tag-economy","tag-federal-reserve","tag-government-spending","tag-president-obama","tag-president-trump","tag-regulations","tag-stephen-moore","tag-tax-cut","tag-tax-cuts","tag-taxes","tag-the-wall-street-journal","tag-wall-street-journal"],"_links":{"self":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/34907","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34907"}],"version-history":[{"count":2,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/34907\/revisions"}],"predecessor-version":[{"id":34909,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/34907\/revisions\/34909"}],"wp:attachment":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}