The GDP report for the fourth quarter last year was a fitting end to President Obama's time in office. At a tepid 1.9% growth, it means that the economy once again underperformed everyone's expectations.
As late as June 2016, the Obama administration was forecasting that real GDP would climb 2.2% for the year. Actual growth for 2016 was 1.6%...
...GDP growth has not exceeded 3% for 11 straight years...
...if Obama's recovery had merely been average, the nation's GDP would be $2.4 trillion bigger...
...In our view, the incredibly mediocre economy we've suffered with over the past 7-1/2 years is not the result of some mysterious underlying "secular" shift that makes it impossible to grow faster than 2.6%. It is the result of bad economic policies, most of which were enacted by Obama in his first two years in office when Democrats controlled Congress. For eight years, Obama kept talking about growth while offering no actual pro-growth policies.
Can President Trump do better? Absolutely.
If Trump does nothing more than cut taxes and drastically simplify the tax code, eliminate needlessly oppressive regulations, delete ObamaCare, and reform Dodd-Frank — and assuming he doesn't set off a destructive trade war — we are confident that the economy will vastly outperform the tepid pace of the past eight years.
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