According to this Bloomberg panel discussion, America’s economic status right now is in a “sweet spot.” The US economy is going well. Economist Constance Hunter explains.
Trump’s 2018 goal for the economy was a growth rate of 3%. The US economy reached 2.9%, making it “the fastest gain for the economy since 2015.” One of the biggest aids for this impressive figure was Trump’s “largest corporate tax cut in U.S. history… as well as additional government spending on military and domestic programs.”
According to head of Trump’s Council of Economic Advisors, Kevin Hassett:
“Our policies are working. We said there would be a capital spending boom and we would get 3.1 percent growth. That is what happened.”
According to many economists, growth is predicted to slow this year though – only reaching 2.3% according to the Federal Reserve. Perhaps even lower given what is transpiring in Europe and China. According to KPMG’s Chief Economist Constance Hunter, while consumption remains:
“strong…[his] main concern is housing investment which fell for the fourth consecutive quarter. If this continues into 2019, it will be a worrying signal for future growth.”
In addition, statistics from the White House showed that 2018 also benefited from “output rising by $560 billion over the four quarters of the year.” In addition:
“Gross private domestic investment, just 17 percent of GDP at the start of the year, accounted for 36 percent of the growth in real GDP in 2018. Real investment in intellectual property products, up 10.8 percent, and grew at its fastest pace since 1999.”
Indeed, America’s economy in 2018 – while there are indicators for cause for concern – did grow at a respectable pace.