During his 2016 presidential campaign, President Trump pledge to double the country’s moribund economic growth to 4 percent or better. As the Commerce Department reported results for this year’s second quarter of 4.1 percent – its fastest pace in four years – Trump was finally able to deliver on his promise.
The exponential growth in GDP, driven partly by the $1.5-trillion of tax cuts that were pushed through earlier in the year and partly by the rush to export products ahead of Trump’s tariff deadline, is expected to provide a major boost to the administration.
Trump has already heralded the achievement as ‘amazing’, at the same time claiming that the next quarter’s figures – due shortly before November’s midterms – will be ‘outstanding’, too. But economists have injected a note of caution, predicting that as Q2’s growth is primarily due to temporary factors, the pace is simply unsustainable and will more likely settle around the 3 percent mark – good, but not outstanding. Continue reading