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Monday, September 11, 2017

3% growth is back

The Washington Establishment said it could not be done.

America achieving 3% growth in the economy again?

The Congressional Budget Office laughed in the face of America.



From CNN on July 14:
When the Congressional Budget Office scored President Trump's budget this week, some of the numbers came out looking different -- very different.
The White House says its blueprint balances the budget over the next decade, reining in the deficit from $603 billion this year to a $16 billion surplus in 2027. But the CBO estimates a $720 billion deficit in 2027 -- and more than double the cumulative deficit over the next 10 years.
So here's the fundamental mismatch: The CBO says Trump's budget math overestimated economic growth to the tune of $3.4 trillion in tax revenue over next decade.
Trump's calculations rest on the assumption that real GDP will increase 3% year-over-year by 2020. But the CBO says not so fast. The nonpartisan agency pegs its estimate around 1.8% -- much closer to the average rate over the last two decades.
The message from our government is simple: Foolish Earthlings, do you think you can achieve the same greatness your great-grandparents did without electricity, automobiles, or even radio?

The answer from America is two words: hell, and yeah.

In the first full quarter under President Trump, the American economy grew by 3% for the first time in a decade.

Former Senator Phil Gramm and Michael Solon, a partner at US Policy Metrics, wrote of it in today's Wall Street Journal:
America has enjoyed an average real growth rate of more than 3% since the founding of the nation, despite the Civil War, two world wars, the Great Depression and at least 32 recessions and financial panics. If 3% growth has now slipped from our grasp, we certainly had it for a long time before we lost it.
So poor was our economic performance during the Obama presidency, with its 1.47% economic growth, that now many Americans believe 3% growth is gone forever. The CBO has slashed its 10-year growth forecast to a measly 1.8% per year. If we never see 3% growth again, our grandchildren may point to 2009 and say, “That was when the American economy ran out of gas.”
That is what Washington wants Americans to believe.

It is hard to subjugate a confident and self-reliant people. National politics in the 21st century reflect the Carter era (a brief experiment in cornpone liberalism) of American malaise.

Obama cynically declared "yes we can" on the campaign trail while governing as "no we won't."

On the campaign trail in Canton, Ohio, on September 27, 1960, Jack Kennedy said:
I think we must develop our natural resources. You cannot bring industry into Ohio unless you have clean rivers. I think the greatest asset that has happened to Ohio during the last few years, except for Governor Di Salle's election, was the building of the St. Lawrence Seaway, and I was proud, though I came from Massachusetts, to vote for it, because it is a national asset and a rising tide lifts all boats. If Ohio moves ahead, so will Massachusetts.
The economy grew annually by 4.4% on average under President Kennedy.

Obama's record was the worst since Hoover.

Those who say 3% growth is impossible are wrong. That they work for the government or for liberal lobbyists does not surprise me.

***

Did you like my book on the nomination ("Trump the Press") or my book on the election ("Trump the Establishment")?

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Caution: Readers occasionally may laugh out loud at the media as they read this account of Trump's nomination.

It is available on Kindle, and in paperback.






Caution: Readers occasionally may laugh out loud at the media as they read this account of Trump's election.

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7 comments:

  1. Deep state CBO harshing our mellow again. I'm with Don on us mellowing the CBO's harsh.

    ReplyDelete
  2. The big boys and skimmers thrive on artificial scarcity, so they try hard to keep things that way. The weaker we are, the stronger they are.

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  3. Phil Gramm was one of the few (or only) economically knowledgeable senators in my memory.

    The CBO has no credibility anymore in my opinion.

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  4. Why does the "nonpartisan" CBO always seem to skew very left?

    ReplyDelete
    Replies
    1. CBO is just another vehicle for bigger government. It is given numbers that averyone knows are phony and uses them to justify new deficit spending. Remember Obamacare and the "doctor fix"?

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  5. A few weeks ago, Warren Buffett said that it did not "feel" like a 3% economy.

    Which is interesting. Because all the time the government and media were celebrating Obama ending the recession and bringing back the economy, no one I knew said their economic lives were improving.

    Guess it's just the side one is on.

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  6. I'm guessing the CBO does not take into account how much regulatory horse manure drags on the economy. Three things have been holding back a manufacturing boom in the US, Obamacare, the worst tax code among industrialized nations, and excessive regulation. The GOP blew its chance to get rid of the first. They better go along with the POTUS on the other two.

    No, we won't get 3% growth by selling new models of cell phones made in China, or trading shares of Google and Facebook. If we remove the obstacles to "Made in America" 3% is conservative.

    ReplyDelete