Economic data from April shows the tax cuts are working

GURPS

INGSOC
PREMO Member
One of the key principles of Trumponomics is that faster economic growth can help solve a multitude of other social and economic problems — from poverty, to inner-city decline, to lowering the national debt.

We’re not quite at a sustained elevated growth rate of 3 percent yet, but the latest economic snapshot tells us we are knocking on the door. The growth rate over the last four quarters came in at 2.9 percent — which was higher than any of the eight years of Barack Obama’s presidency.

Halfway through this current quarter, which began on April 1, the Atlanta Federal Reserve estimates growth at 4 percent. If that persists through the end of June, we will have reached an average growth rate of 3 percent under Trump. ‎

Not bad, given that nearly every liberal Trump critic trashed Trump’s campaign forecast of 3 to 4 percent growth as an impossible dream. Economists like Larry Summers, Obama’s first chief economist, gloomily declared that we were mired in a new era of “secular stagnation” and that 3 percent growth was unachievable. Paul Krugman of The New York Times said we were more likely to see flying cars than 3 to 4 percent growth.


Economic data from April shows the tax cuts are working
 

transporter

Active Member
Just the basic point I've been making on this site for years...here are two graphs of real US GDP.

The first is annual change by quarter on a percentage basis. This is the one Gilligan continually gets wrong. Mr. Ivy League Lite who took graduate level statistics could never understand that GDP is reported on a quarterly basis and not just on a Jan 1-Dec 31 timeframe. As such, annual GDP is easily calculated each quarter. It is interesting that the comrade GURPS finally found a right wing media site that understands this. Of course they are wrong in stating that 3% annualized quarter to quarter GDP never hit 3% under the previous administration...but I guess one can't have everything.

GDP Annualized rolling quarters.jpg

The second graph is the real US GDP quarter over quarter on a annual basis. (For those who don't understand, US GDP is reported each quarter. The percentage that is reported represents an annualized rate if GDP in that quarter had continued for a full year. The percentage does not represent the amount of growth from in one quarter.)

GDP quarter to quarter.jpg

The tax cuts will have some modest impact on growth. The impact is expected to be very modest and very short lived (once 2018 ends the impact will be minimal as the corporate tax cuts--which is what this legislation was all about--are all front loaded into the first year.) But people who only read propaganda won't understand this.

Oh and BTW...there is no way that lowering taxes and raising spending will ever reduce the deficit or debt. You have to be completely brain dead to believe that.

As for the author's bashing of Larry Summers, the author fails to understand that the natural level of growth in the US economy is currently about 2%. IF we are to achieve a 3% year over year GDP growth rate, it will have been accomplished with tax cuts and govt spending increases...this growth is not organic it is on borrowed money. Therefore, this WILL result in a much larger US debt load. This is REALLY basic stuff. Mr. Summers is correct in his assessment.
 
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