U.S. Economy Tops Three Percent Growth Over Calendar Year, a Milestone Obama Never Achieved
A few important caveats, lest anyone be tempted to spike the football without reservations: First, while several of these data points are definitely encouraging, whether this level of growth (and continued record-low unemployment) can be sustained through 2019 and 2020 is an open question — and one that could be determinative as to the president’s re-election chances. Second, in the fiscal year, overall US GDP growth fell just shy of three percent, by one-tenth of one percentage point. Third, it’s virtually guaranteed that these numbers would be significantly better if the president were not engaged in multiple trade-related showdowns and tariff battles. Whether one agrees or disagrees with his approach to trade policy (I mainly disagree), it is settled economic science that increased tariffs are anti-growth. And finally, there’s a risk that the developing global slowdown could infect the US economy, even if we’re performing relatively well. Now, onto the good news:
U.S. economic growth was better than expected as 2018 came to a close, with GDP rising 2.6 percent, according to a first estimate the Commerce Department released Thursday. Economists surveyed by Dow Jones expected a gain of 2.2 percent after a 3.4 percent rise in the third quarter. The growth came amid a bevy of uncertainty and a time when the stock market briefly slid into bear market territory…Even with the weaker fourth quarter, economic growth was solid for the year, after GDP gains of 2.2 percent and 4.2 percent in the first and second quarters respectively…Employment remains strong, with payroll gains continuing in excess of 200,000 a month and wages rising at the fastest clip of the recovery.
Fourth quarter GDP exceeded experts’ expectations, topped three percent over the last year (more on that shortly), and is buttressed by sustained, low unemployment, and steadily rising wages. Bloomberg reports on a strong indicator that the GOP’s tax reform law — which is cutting taxes for the vast majority of Americans, despite universal Democratic opposition — helped spur 2018’s robust growth, thanks to increased business investment.
This Administration’s GDP growth for 2018 (Q4 over Q4) is higher than any year under the last Administration (highest was 2.7). pic.twitter.com/W9KjQOVbu1
— CEA (@WhiteHouseCEA) February 28, 2019
(Read more from “U.S. Economy Tops Three Percent Growth Over Calendar Year, a Milestone Obama Never Achieved” HERE)
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