Friday, July 27, 2018

Did You See Trump's Crowing Over GDP Growth

I had the chance to watch President Trump's address live.  Perhaps you did too, or maybe you saw a clip on the evening new.  If you watched Trump, surely you must have wondered how much was true, since usually little is.  Trump claims practically unparalleled growth, and predicts that it will continue into the future.  But we had higher growth in 2012 and 2014.  

Nor does anyone think we will continue to grow at 4%.  We have had a one time repatriation of cash because of the tax cuts.  And the money is not going toward now production, but toward the buy back of outstanding stock - so the spending is considered capital spending, but not productive spending.  

Manufacturing growth is nothing new either.  Yes it is growing, but it has been growing all since the collapse and employment is still below that of 2008.  

In fact, even if capital spending went towards real work, much of it goes to reduce the need for people.  

Presidents usually speak with pride about economic growth, but compare Obama's temperate speech (and one that is mostly true) to Trump's utterances today.

Obama Speaks About the Economy

Trump:

President Fatso goes on and on

There is no comparison.  

Trust me, there is no reason for a parade.



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