Trump's Economy Still Unable to Rise above 3% Growth

I honestly, believe we can grow at 3% easily but it will take a lot of hard changes and a lot of bipartisanship. Neither Trump or Obama has come close to fixing our problems in the way they should be fixed. But even if we continue down this path of stagnation another nation in the future will pick up where we left off.

 

an upward trend since then means your guy is only taking credit for normal market volatility; nothing new.

 

The economy will grow at ~ 4% real gdp growth under the supply side economic policies which have been enacted and which will be enacted in the future

 

That’s delusional

 

I am sorry but 4.4 trillion dollars of spending and almost a trillion dollar deficit isn't what supply side economics is about. We still have all levels of government charging 5 trillion dollars in taxes and hundreds of thousands of laws and regulations.

 

Spending is a political decision. It has nothing to do with economics. If you understood supply side economic policies you would not make the comment about regulations.

 

Spending has a massive effect on the economy. I happen to believe that a small government with little debt is great for the economy. Reagan, Bush, and Trump gave a lot of lip service to conservativism but they all grew the size of the government just like democrats. The only difference is that they paid for it exclusively with debt while democrats mixed in tax increases.

 

That’s the “Triumph of Politics”. Supply side economics grows the economy but politicians grow the government. Reagan and Clinton tried to reduce the size of government. Bush 43 did not. Trump is trying as well.

 

The size of the government has increased under all presidents and the reality is that the government remained big, and regulations have grown under all presidents. The problem with the Republicans is that they do tax cuts as a speedy-growth debt-fueled measure but this just creates a debt-fueled sugar high for the economy that isn't real because its based on debt. A more natural approach is to cut spending and cut taxes combined with regulatory and tax simplification. This won't result in as much short-term growth but will be better for us over the long term.

Its kind of like how some people try to lose weight by just exercising a lot and do a little some short-term dieting. And for these people the weight always comes back because all this exercise is unsustainable and its hard to stay on though diets that only exist to lose weight. A better way is to take the time to change diet and dieting habits and develop some healthy long-term exercising habits like walking and develop them more slowly over the long term.

 

Supply side policies have resulted in superior economic growth for the 25 years from Reagan through Bush 43. That includes Clinton. That is hardly a sugar high. And it is not debt fueled because spending levels have not been significantly increased to create a Keynesian gov spending stimulus. The eight years under Obama who implemented command - control economics clearly show the effects of slow economic growth. And indeed shows the failure of the Obama government spending stimulus to induce "supply side" typical growth.

Trump is successfully addressing regulations, tax reform, and trade restrictions on US exports. Spending is politically controlled by the legislature and with the filibuster rule in the Senate in place significant spending cuts are virtually politically impossible.

The only politically possible way to significantly reduce government spending is via Social Security, Medicare, and Medicaid reform transitioning to a private system.

 

Rofl how were those cherries you picked on your cereal this morning?

 

What about it? The Democrats took control January 2007 a year before the recession. What do you want to discuss about their failure to pass measures to help mitigate the damage?

 

2.7% and increasing. Its a lagging indicator.

 

Debt is debt. You can't "spend down debt." You pay down debt, which is what we should have done instead of the tax cut that has added to the debt. Government should spend in recessions and pay off debt in a good economy. Despite Republican promises that the tax cut would bring higher wages, wages have actually declined by almost 1% since the tax cut took effect, and we are not seeing the promised sustained 3% growth necessary for the tax cut to pay for itself. So, we got a much bigger debt, without higher salaries or economic growth, and have a recession looming on the horizon. When the next recession hits, we have fewer resources to help the people impacted the hardest by recession, and lack resources to curb a recession from blowing up into stagflation or deflation.

 

Tax reform took effect 6 months ago.

 

… and in that time, we've seen wages fall. The Republicans said the tax cut would go to workers and would increase economic growth to a sustained 3%, in order to pay for itself. Trump even said he wouldn't benefit from the tax cut because it was going to the middle class. We have not seen sustained 3% growth or wage increases. Growth is exactly on the same level it was before the tax cut, just as economists said it would be.

One of the reasons Republicans have turned to immigration for the midterms is because the tax cut isn't a winning strategy.

https://www.payscale.com/career-new...ts-wages-declined-in-80-percent-of-industries

 

You actually believe that the tax reforms resulted in reduced pay ??

You are forming a conclusion based on one quarter's data. It’s been six months. The Q2 projection for real gdp growth is 3.7%. Reagan's economy took a year or two before the policies fully kicked in resulting in a year of over 7% real growth and a month in which 1 million* new jobs were created. And the R’s will absolutely run on economic growth in the midterms.

 

Holy crap, you keep pushing that even after your been shown multiple times how it was tax cuts and increased spending under Bush.

But why dont you tell us again how it was Obamas fault the he didn’t “mitigate the damage”, while refusing to talk about what caused the “damage” in the first place.

 

Government policies and regulations starting back in FDR’s Presidency caused the damage. Obamanomics prevented a typical strong recovery.

 

Holy crap you've never shown anything of the sort, the tax rate cuts and RESTRAINED spending under the Republicans handed the Democrats a measly $161B deficit in 2007.

2008 spending increase 10% and a $400B deficit
2009 spending increase 20% and a $1,400B deficit and $1,000B deficits for the next three years.

Then the worst recovery in modern history with unemployment soaring to 10% and staying over 9% for the next three

We see how the Republican policies worked during the 2001 recession and how once they got them full implemented we had a very good economy with soaring record increases in tax revenue along with those measly deficits. AND full employment AND growing incomes. The Democrats took control in 2007 and how did we do?

Sorry your pitiful simple dismissals refute nothing, never had.

 

i don't specialize in fake news; only the right wing, does that.

 

Says the guy who argues that raising the price of something increases consumption. That’s delusional.

 

Yes, it does; more Labor wants to "consume" employment at that new price point. A vacuum of special pleading, is more delusional.

 

Where did you get that from ?? “more Labor wants to “consume” employment at that new (higher) price point” ?? What is the source for that??

 

Where did you get that from ?? “more Labor wants to “consume” employment at that new (higher) price point” ?? What is the source for that??

 

an understanding of economics. capitalism works. more people will look for work with a higher minimum wage.