GDP, Big Red Car? Huh?
Big Red Car here on a lovely, warm Texas summer day – sun shining and headed to 101F. Ahhh, summer!
Something else which is hot is the economy. It is hot as evidenced by today’s GDP number which shows growth in excess of 4%. This is Q3 2018 (April, May, June 2018). US starts its fiscal year in October, but you knew that, right?
Couple this with low unemployment, high job growth, the beginning of real wage growth, increased capital spending, and some progress on the issue of trade and it is easy to see why the President was in the Rose Garden taking a victory lap.
When pressed to explain why growth has begun to accelerate, President Trump and his economic advisers pointed to reductions in regulations, the tax cuts, and the beginning of work on trade. They had a few other things, but those are the big ones.
The most important thing is that the White House is trying to create a fertile environment for growth. That is more important than many of the elements.