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GDP Growth at 3.2 Percent in First Quarter as Economy Steamrolls Over Skeptics

GDP growth economy steamrolls TrumpThe American economy picked up pace in the first quarter of 2019, with the country’s gross domestic product (GDP) growing at an annualized rate of 3.2 percent.

“This is far above expectations or projections,” President Donald Trump commented in an April 26 tweet. “Importantly, inflation VERY LOW. MAKE AMERICA GREAT AGAIN!”

“It’s a blowout number,” said Larry Kudlow, director of Trump’s National Economic Council, in a CNBC interview on April 26.

The solid growth relieved the worries of some economists voicing their concerns of an economic downturn after the GDP 2.2 percent growth pace in the last quarter of 2018.

The worries were fueled by a slew of weak economic indicators, including unusually slow job growth in February as well as the backdrop of 2018’s mutual increase of tariffs accompanying the trade negotiations with China.

The economy, however, has proven more resilient.

“The increase in real GDP in the first quarter reflected positive contributions from personal consumption expenditures, private inventory investment, exports, state and local government spending, and nonresidential fixed investment,” stated the Bureau of Economic Analysis (BEA), in an April 26 release accompanying the release of the advanced GDP growth estimate.

Imports, which lower GDP in the BEA analysis, decreased. Some major downward pressure on the GDP was the decrease in residential investment.

“Supply-side tax cut, deregulation, opening the energy sector, pro-growth trade reform, that’s improving the supply side, the production, and the investment side of the economy,” Kudlow said.

Over the past four quarters, the economy grew on average by 3.25 percent, a number only beat twice since 2006.

Fed

Trump has consistently extolled the economic boom under his administration.

“Our economy is doing so well, perhaps the best it’s ever been in our history,” he said on April 24.

He took another victory lap at his April 27 rally in Green Bay, Wisconsin, after the GDP number dropped.

“Just yesterday it was announced that the United States economy grew, some people thought unexpectedly. Not me, I didn’t think [that],” he said. “In fact, frankly, if we had the Obama interest rates—low, almost nothing, actually nothing—and if we had quantitative easing instead of tightening … we would have been even much higher than this. But this is very high.”

He noted the economy performed well despite the partial government shutdown in January, some extreme weather, and the fact that the first quarter is often the slowest of the year.

“We did 3.2 percent in the first quarter GDP, crushing expectations, and accelerating our economic boom,” he said.

He’s recently urged the Federal Reserve to avoid further rate hikes and tightening of its balance sheet, which he and some economists blamed for the slowdown in late 2018. Four increases in 2018—which hasn’t happened since 2006—prompted a swift rebuke from the president. Since then, the Fed hasn’t signaled another rate hike and the new GDP numbers are not expected to prompt one.

Kudlow even suggested a rate cut may be in order since the Fed’s own indicator of inflation has slipped in late 2018.

Jobs

Some of the best economic indicators have been coming from the job market, where the unemployment rate stood at 3.8 percent in March with a 12-month average at 3.84, the best since 1970.

Fed Vice Chairman Richard Clarida acknowledged earlier in April the central bank was surprised that the job market hasn’t overheated on labor shortages. Indeed, the unemployment rate excludes people who haven’t sought a job in the past four weeks, and it was mostly these people who were getting hired in 2018, according to Labor Secretary Alex Acosta.

The administration has worked on alleviating labor shortages by promoting apprenticeships and other forms of job skills training.

After Trump signed into law his prison reform, the First Step Act, which mainly aims at reducing recidivism, he proposed a Second Step Act to make it easier for former federal prisoners to get jobs.

Trump also has repeatedly said he wants Congress to move the immigration system from emphasizing chain migration and diversity to attracting talent—a merit-based system. Republicans are largely in favor of the change, but Democrats are unlikely to cooperate as it would give Trump another policy victory before the 2020 election.

Reprinted with permission from - The Epoch Times - by Petr Svab

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Rick

They’re not skeptics, they’re liberals trying to talk down anything good about Trump, and hoping for the worst!

Paul W

Hey BO…what happened to 3% is no longer attainable?

Alex

MAGA

Hdrydr

The obamanation gave us “Socialism lite”. It didn’t work out too well. Trump understands the economy as only a businessman does. A vast majority of the “rules and regulations” the obamanation used to cripple our economy are gone due to President Trump and America is prospering again.
MAGA…

Rick J.

Looking back, Obama said it couldn’t be done. But when you think about it, who would take advice from a
man whose wife had to balance his checking account. Thanks President Trump!! MAGA

James

The skeptics, from the Obama era are children of Satan, as Jesus said, “That Satan came to kill, steal, and destroy.” Jesus said, “That Satan is a liar from the beginning and the father of all lies.” Jesus came that we might have life and have it more abundantly since Jesus is the truth, the way, and the life.

Wayne D Peterkin

When our government adopts pro-business policies meaning low business tax rates to make us world competitive and minimal regulation, then add low interest rates, there is no reason to not have a very solid economy and never has been. Anything that sucks money out of a business that is not related to that business’ product hurts the economy including hurting jobs and wages. What Trump and the GOP did was improve the business climate overall, and it’s something no Democrat seems to understand. Instead we see liberals vilifying companies who are the people providing jobs and wages. Never vote for a Democrat unless you like a stagnant, weak economy. It’s all they know how to provide.

Phyllis A.

Love how the Dems interviewed on Fox all accredit the GDP growth to Obama saying it began under him. Right! It just
took years for it to come to fruition. Moronic, brainless and hateful explanations simply to evade the truth and never to give
President Trump one iota of credit for anything he does.

Keith H

Of Course, this is what happens when we put a person who cares and actually wants to make things better here in America. Not just a talker, but an actual doer. Now if he would just get rid of the Federal Reserve, then we would really see an avalanche of growth !!! Beware the Dumocrats want to go back to the slavery of Obamie. Them there libtard progressives !!! Can’t ever let that happen again !!! But Mr President if you don’t shut that border down and stop the flow of deceased filth coming across it. We may very well see those days again !!! Let’s say in 2020 perhaps ? Better shut it down !!! They are coming across everyday still !!! Wake Up Mr President !!!

Stephen Russell

Lets aim for 7% growth to Hell with the Finance estd etc, Go for 7%+

Thomas H

Unfortunately the unbiased media will bury this story, so in the eyes of the majority of my neighbors and co-workers, it never happened. This is the same media already acting like Biden will beat Trump in 2020. How soon before they’ll be telling us to not vote next year.

Big Al

The Democrats need a full court press on coming up with a positive agenda on the issues that affect the U.S.

john s nunan

dont know the whole story am bot an economist keep up the good work whoever is doing it …..

Greg Russell

But yet, demon-crats wont accept this report as positive, because libs still want a total redistribution of wealth, and a socialist America, period. In case you havent noticed, we are in a fight for the soul of this Republic. Our very values, traditions, culture and faith are at stake. You had better get involved and help change the direction the country is headed, especially if you want to have something decent and wholesome to leave your grandchildren.

Steve Greenwell

This is not written to belittle the economic growth of the most recent quarter. However, the growth is due to the American people’s pursuing their semi-enlightened self interest. All President Trump did was to compel the rest of government to get the hell out of the way of the people’s doing so.

Phyllis Poole

We
Need the Fair Tax. Goodbye IRS !!
Look it up and join !

Anthony Green

Just WHEN will the DIM DEMS admit they are WRONG about President Trump?

Todd Wingard Taylor

It is time to recognize where our blessing and liberties come from–God. It is long past time for Americans to repent, turn and give their hearts back to the God. We are were we are, as a country, because we rejected the Bible, prayer and God back in the 1960’s. Moral relativism, the age of “enlightenment” has been the undoing of this nation foundation; its not to late to repent and reclaim our love for God, our moral compass and the desire to honor Him as a nation.

Tom Walls

Imagine what more could be achieved *with* the Democrats’ help.

Bob

Trump does so much good for America and the socialists dismiss it with their socialist, impossible promises which are lies. How can anyone be stupid enough to believe a democrat when Trump delivers what he promises and it’s good for America.