Skip to main content

The American economy is operating at its full potential for the first time in a decade, thanks to the rise in economic output since President Donald Trump’s election.

Stronger economic growth in the second and third quarters of 2017, when the economy grew by more than a three percent annualized rate, pushed economic output higher than what the Congressional Budget Office refers to as “potential gross domestic product.”

In the chart below, the blue line represents the potential output of the economy–basically, what the economy could produce at a high level of investment and employment. The red line represents actual economic output. The space between the lines is the “output gap”–the goods and services we could have been producing but were not:

 

Note that potential GDP is not a ceiling. The economy ran above potential from 1964 to 1969 and for briefer periods more recently. And this rise to capacity could be short-lived, particularly if political events conspire to stymie the president’s agenda.

 

http://www.breitbart.com/big-g...full-capacity-trump/

Original Post

Replies sorted oldest to newest

Kraven,

I loved the ceremony today, where Trump cut a red ribbon over the massive pile of regulations that were revoked.  That, alone, saved billions of dollars and tens of thousands of man-hours labor.  

https://www.voanews.com/a/trum...l-rules/4164858.html

President Donald Trump speaks during an event on federal regulations at the White House, Dec. 14, 2017, in Washington. The large collection of paper at right was said to represent the size of the federal regulatory code, while the smaller stack at left was meant to represent the amount of federal regulation that existed in 1960.

Warning to anyone with a small business -- do you have a compliance officer, or contract for one.  My old audit firm had a department that provided such services to business that declined to have their own in-house.  Thankfully, there are too many small businesses for the federal government to inspect for compliance with regulations.  However, if for some reason, the government does inspect your operations, look for large fines and, possible loss of your business.

That, alone, isn't the reason for the economy beginning to boom.  Revocation of trade agreements and refusal to sign other trade agreements are another reason.  Sheer animal spirits at relief from the nanny state is another.

 

Add Reply

Post

Untitled Document
×
×
×
×
Link copied to your clipboard.
×