Trump didn’t create the Trump boom


I know I have been away a long time.  My husband was quite ill and then he passed and I haven’t gotten back to writing.  That does not mean, however, that I am not reading and thinking.  I’m sending out articles that I find really interesting.  Hope there is something here that gets your attention.

Neither The Week or The Wall Street Journal will let me on their site to find the address for this article or to copy paste, so I will just type it.  (I have a subscription to the paper The Week.  Am not going to pay to use the site online.)  It is by Alan Blinder.  “How much credit does Trump deserve for the strong economy? asked Alan Blinder.  To be sure, ‘it really is in great shape.’  GDP growth in the first nine quarters of Trump’s presidency has averaged 2.77 percent, compared with 2.3 percent over the 16 quarters of President Obama’s second term.  That’s ‘neither a revolution nor a revelation, but it’s certainly worth having.”  But does the president actually deserve the credit?  ‘His most important economic policy initiative by far was the tax cut passed by Congress in December 2017.’  It was supposed to raise business investment, and it did a bit–but only enough for a minuscule 0.1 percent boost in the DP growth.  What accounts for the rest?  Despite Trump’s disdain for government, ironically, nearly half comes from ‘a large acceleration in federal government spending.’  Trump and his supporters tout their deregulation efforts as well, ‘but to me the total impact on GDP from deregulation looks small,’ since most of the major deregulatory moves weren’t economic.  On balance Trump’s economic policies probably boosted GDP growth a bit.’  But it came at a cost of ‘an exploding federal budget deficit,’ long-term environmental damage, and ‘reduced protections for workers, consumers, the poor and small investors.'”

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