Trump's worthless corporate tax cuts and idiotic projections of GDP growth are going to come home to roost in 2020. Unlike some Dems I am not happy about the poor growth and USA & global economic slowdown.
"All of this goes to show that making the economy great isn’t easy. Even a $1 trillion tax cut and massive deficit spending could only provide a temporary boost to the growth rate. The ability of any president to make large improvements in our living standards is exaggerated."
"The ability of a president to make things worse, however, is really the more relevant story today."
It seems like a million years ago, but in December 2017, when Trump signed the Tax Cut and Jobs Act (TCJA), the Republicans were flying high. With the tax cut, they had accomplished a significant legislative victory on their top priority issue. They celebrated that the economy would be able to soar once more.
And it did soar — a little bit, for a little while. Real gross domestic product (GDP) growth hit 3.5% in the spring of 2018, and it seemed for a moment to some Republicans that Trump might have been correct about the incredible impact that the tax cuts could have.
But then reality hit. Growth throttled back to 2.9% and then to 1.1%. Since the tax cut went into effect, growth has averaged 2.5%, about the same as the 2.6% recorded in the six quarters before the tax cut was passed.
Almost every forecast from professional economists, the Federal Reserve, the Congressional Budget Office, the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development (OECD) — but not the White House! — looks for growth of around 2% per year for the foreseeable future. With the growth in the potential labor force slowing from about 1% per year to about 0.2%, it’ll take some very good productivity numbers just to hit 2%.
Link: https://www.marketwatch.com/story/how-trumps-economy-went-from-rocket-ship-to-lead-balloon-2019-09-27