Trump is unmuzzling the economy
Virtually the whole world is beating up on the Trump administration for daring to predict that low marginal tax rates, regulatory rollbacks, and the repeal of Obamacare will generate 3 to 3.5 percent economic growth in the years ahead.The mavens of government greed are reluctant to accept the reality of the stimulating effect of tax cuts. Many of them prefer wasteful government spending. It is part of their control freak mentality when it comes to the economy.
In a CNBC interview last week, Treasury Secretary Steven Mnuchin held the line on this forecast. He also argued the need for dynamic budget scoring to capture the effects of faster growth. Good for him.
But what’s so interesting about all the economic-growth naysaying today is that President Obama’s first budget forecast roughly eight years ago was much rosier than Trump’s. And there was nary a peep of criticism from the mainstream-media outlets and the consensus of economists.
Strategas Research Partners policy analyst Dan Clifton printed up a chart of the Obama plan that predicted real economic growth of roughly 3 percent in 2010, near 4 percent in 2011, over 4 percent in 2012, and nearly 4 percent in 2013.
But it turned out that actual growth ran below 2 percent during this period. Was there any howling about this result among the economic consensus? Of course not. It seems they’ve saved all their grumbling for the Trump forecast today.
And what’s really interesting is that the Obama policy didn’t include a single economic-growth incentive. Not one. Instead, there was a massive $850 billion so-called spending stimulus (Whatever became of those spending multipliers?), a bunch of public-works programs that never got off the ground, and finally Obamacare, which really was one giant tax increase.