GDP is still the best overall measure of our economy. It stands for gross domestic product. It includes consumption, investment, government and trade.
Over the past 25 years, it has averaged around 2%. Over the past hundred years, GDP growth has averaged 3.5%. That was real prosperity for all Americans. Top, middle and lower incomes. Not only prosperity, but also the opportunity to climb the ladder of success.
I think Trump’s economic program of supply-side tax cuts, deregulation, drill, baby, drill and free and fair two-way trade is capable of achieving 5% GDP growth. That’s right, 5%. Not every quarter or every year, but I think with huge business investment, including the AI ​​boom, along with the drop in oil prices, which will allow us to zero out inflation for a while, Trump’s program could deliver 5% growth next year. Maybe even the next year.
Kevin Hassett, director of the White House National Economic Council, discusses President Donald Trump’s economic policies, inflation and more on “The Claman Countdown.”
Trump’s shocked and awe-inspiring reinterpretation and rejuvenation of a new capitalist path to prosperity is currently being completely underestimated by everyone. Friend and enemy.
Even the price of oil fell, from almost $80 at the beginning of the year to the mid-$50s today. Oil influences hundreds of commodities, services and their prices across the economy.
And if the price remains more or less at the same level, the drop of more than 30% will reduce consumer prices. It is possible that we will see a zero CPI or even a negative CPI value for a number of months. This will obviously boost real GDP. The last time the economy achieved 5% growth was in the second quarter of 2000. That was 25 years ago. The last time real GDP was 5% for the entire year was Ronald Reagan’s 1984, when the figure for the entire year was 5.6%.
So hang on to your hats folks, we haven’t done it in over 40 years, but I think it could very well happen next year, and or the year after that. We will certainly reach the Dow 50,000 very soon and continue with records in the S&P. But as I listened to Mr. Trump’s solid speech on Wednesday night, I was struck by the thought that we are ready for a 5% economy.
