President Donald Trump predicted “big league” economic growth resulting from his tax reform package, and according to the Atlanta Federal Reserve, he’s going to deliver.
Barack Obama was the first president since WWII to go a single year of his presidency without a single year averaging 3% economic growth or greater.
To illustrate how important even a seemingly minuscule difference in economic growth is compounded over time, note that an economy growing at 2% a year will double in size every 35 years, while one growing at 3% will double every 23.5 years. In other words, it would take the economy growing at 2% an additional 11.5 years to catch up to the wealth of the one growing at 3%. And thanks to the compounding, the gap will only exacerbate over time at an accelerating rate.
President Donald Trump promised that 4% economic growth would result from his tax reform plan, and for Q1, numbers are coming in ahead of expectations.
According to CNBC,
GDP is expected to surge 5.4 percent to start 2018, the central bank branch estimated in its latest rolling look at how the economy is progressing.
If the forecast holds, it would be the best quarter since the Great Recession ended in 2009. The previous highest was third quarter of 2014, which hit 5.2 percent.
Additionally: Real consumer spending jumped from 3.1 percent to 4 percent amid a sharp savings drawdown, and private fixed-investment growth surged from 5.2 percent to 9.2 percent.
The numbers should be taken with a grain of salt, however, given the Atlanta Fed’s particularly optimistic forecasts. Since 2015, the Atlanta Fed has overestimated their growth estimates by 0.8 percentage points.
Still, that implies 4.2 percent growth if they are overstating growth, and that’s certainly nothing to complain about.
One can only wonder what the counter-argument from the Left will be. If he outclasses Obama and achieves 4 percent annual economic growth, will they complain it wasn’t 5% or 6%?
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