Mechanism by which the GOP tax cut was supposed to supercharge growth was by supercharging business investment.
Business investment instead *fell* last quarter, by 3% annualized.
Business investment instead *fell* last quarter, by 3% annualized.
investment in structures — factories, offices, oil rigs, etc. — plunged 15.3% in Q3, after falling 11.1% in Q2
This was 2nd consecutive quarter in which overall business investment shrank.
2019 GDP growth also now on track to equal about what it averaged during Obama’s 2nd term.
The Trump economic agenda — tax cuts, trade wars, pro-pollution deregulation — ain’t so magical after all
2019 GDP growth also now on track to equal about what it averaged during Obama’s 2nd term.
The Trump economic agenda — tax cuts, trade wars, pro-pollution deregulation — ain’t so magical after all
Also worth pointing out that the mechanism by which we were supposed to get supercharged biz investment was through big capital inflows to the US. Capital inflows to US have instead been shrinking
Presumably Trump & his advisers will blame the Fed (which is meeting today) for growth slowdown, saying problem is Fed hasn’t cut rates fast enough. But WH’s own recent economic forecast assumed 3% GDP growth with *higher* interest rates than we have today
