Left was dead wrong about economic growth under Trump economic polices and is still in denial
Time magazine's cover story for the week of Nov. 6 is a classic. It blares: "The Wrecking Crew: How Trump's Cabinet Is Dismantling Government As We Know It." The New York Times ran a lead editorial complaining that team Trump is shrinking the regulatory state at an "unprecedented" pace.Those who made the wrong predictions of economic growth have not come out to say they were wrong. Instead, they are just trying to ignore the good news on the economy and focus on elements of the President's style that they do not like. Liberals will not admit that their economic policies were wrong, nor will they admit that conservative policies will work.
Meanwhile, last week the stock market raced to new all-time highs; we had another blockbuster jobs report with another fall in the unemployment rate; and housing sales soared to their highest level in a decade.
Are the editors at Time and the Times so ideologically blinded that they are incapable of connecting the dots?
The U.S. economic revival of 3 percent growth has already defied the predictions of almost every Donald Trump critic. I vividly remember debating Hillary Clinton's economic gurus during the campaign: They accused Trump and advisers such as myself of "lying" when we said that pro-growth policies would speed up economic growth to 3 to 4 percent.
Jason Furman, who chaired the Council of Economic Advisers under President Barack Obama, told reporters earlier this year that the chances of reaching 3 percent growth over a decade were about 1 in 25 -- which is what many political experts said was Trump's chance of winning the election. Another Obama economist, Alan Krueger, called the 3 percent growth forecast "extremely rosy."
Larry Summers, a top economic adviser to Obama, questioned the "standards of integrity" of the Trump economic team's forecast for 3 percent (or more) growth. "I do not see how any examination of U.S. history could possibly support the Trump forecast as a reasonable expectation," he wrote in The Washington Post.
Congress weighed in, too. "This budget relies on absurd economic projections and pretend revenues that no credible economist would validate," Rep. Pramila Jayapal, D-Wash., announced at a House budget hearing.
The sharp-penned Paul Krugman of The New York Times declared Trump's growth forecast an act of "economic arrogance." He said that the productivity improvement necessary for faster growth was as likely as "driverless flying cars" arriving "en masse."