US President Donald Trump’s Economic Plan to Spur GDP
Economic experts now believe that the Trump White House estimates of economic growth of 3 to 3.5% are actually “too conservative” and the economy is poised to expand much faster than that.
“With Reagan, we put up 4% growth rates coming out of a Deep Recession,” guru Larry Kudlow, who was a senior economist in the Reagan White House, said Wednesday on TV.
“The Trump people, who are cutting tax rates, particularly on businesses but every place else, rolling back regulations, rolling back Obamacare are penciling in a 3% to 3.5% growth of real GDP” for the first year, said Mr. Kudlow.
The US economy’s expansion slowed in Q-4, and annual GDP failed to reach 3% for an 11th year running.
Real GDP (gross domestic product) increased at an annual rate of 1.9% in Q-4 of Y 2016, the Bureau of Economic Analysis said last month. Real GDP increased 1.6% in Y 2016, compared with an increase of 2.6% in Y 2015.
During the early years of the Hussein-Obama Presidency, there was increased spending, higher taxes and more regulations. The nation struggled to hit 2% growth as a result, despite rosy predictions by Barack Hussein-Obama.
The Obama White House constantly overestimated economic-growth predictions. President Donald Trump’s predictions are more “real” and grounded in economic reality, not the pie in the sky,
Donald Trump vowed to “push the economy into higher gear with an aggressive combination of tax cuts, reduced regulations and more government spending on public works.
President Trump has the prefect strategy to foster such growth by “incentivizing” the economy.
“The backbone of the Trump plan, something we haven’t done in I don’t know how many years, is to slash tax rates for large and small companies. This is hugely important. It’s been the biggest obstacle to growth and productivity,” Mr. Kudlow said.
“Productivity shifts when policy shifts. We’ve had anti-growth policies for a number of years and I’m going to include some Republicans in the 2000’s as well as some Democrats,” Mr. Kudlow said.
President Trump will not be an ideological purist like Republicans who support free trade but don’t fight for fair trade.
“If you just say, ‘well we’re for free trade and we’re not going to look at the deals that we make’ — that’s not a good idea,” he said. “We’ve had an anti-business president now for 8 years who doesn’t take a hard-nosed attitude towards these deals. President Trump is going to get better deals for us, which is still free trade.”
If the economy grows as it will under Trump, there is going to be a lot more money to spend.
Wednesday, the US major stock market indexes finished at: DJIA +32.60 at 20775.60, NAS Comp -5.32 at 5860.65, S&P 500 -2.56 at 2362.82
Volume: Trade in the NYSE came in at 983-M/shares exchanged.
- NAS Comp+8.9% YTD
- S&P 500 +5.5% YTD
- DJIA +5.1% YTD
- Russell 2000 +3.4% YTD
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