Donald Trump is right to feel vindicated by the reported GDP growth but he promises more.
GDP growth for April through June of this year was 4.1 percent. Understandably, Donald Trump was proud of this rate:
The Obama administration had seen this level of growth for a quarter, but they averaged much lower than we have averaged under Trump.
Gross domestic product grew at a solid 4.1 percent pace in the second quarter, its best pace since 2014, boosting hopes that the economy is ready to break out of its decade-long slumber.
The number matched expectations from economists surveyed by Reuters and was boosted by a surge in consumer spending and business investment. Stock market futures edged lower on the news while government bond yields moved lower.
That’s the fastest rate of the growth since the 4.9 percent in the third quarter of 2014 and the third-best growth rate since the Great Recession. In addition to the strong second quarter, the Commerce Department revised its first-quarter reading up from 2 percent to 2.2 percent.
“We’re on track to hit the highest annual growth rate in over 13 years,” President Donald Trump said in remarks an hour after the report hit. “And I will say this right now and I will say it strongly, as the deals come in one by one, we’re going to go a lot higher than these numbers, and these are great numbers.”
In addition to the rise in consumer and business spending, increases in exports and government spending also helped. Personal consumption expenditures rose 4 percent while business investment grew 7.3 percent and federal government outlays increased by 3.5 percent.
Another CNBC story reported on more of President Trump’s comments, “Trump triumphant: ‘We’re going to go a lot higher’ than 4.1% GDP growth.”
The president also championed the GOP tax overhaul passed late last year, saying that “as a result, more than 6 million Americans are enjoying new bonuses, better jobs, and far better paychecks.” The president said that Democrats’ efforts to turn back the tax cuts would be a “disaster for our economy.”
“As you know, the Democrats want to end that and raise everybody’s taxes,” Trump said, referring to the GOP tax plan.
CNN headline from October 11, 2016:
“Trump promises 4% growth, economists say ‘no way”
— Charlie Kirk (@charliekirk11) July 27, 2018
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