Eight years of a Marxist influenced administration focused on more regulation, higher taxes on the “rich”, and more redistribution stifled growth in one of the most dynamic economies in the world. Just how much growth was stifled is becoming more evident the further we move away from the Obama years. The Obama administration took over an economy that had just suffered its deepest recession since the Great Depression. Most often, the deeper the recession the stronger the recovery. Amazingly, the Obama administration managed to preside over one of the weakest recoveries on record.
Unprecedented monetary stimulus and almost a trillion blown on bridges to nowhere couldn’t even sustain three consecutive quarters of 3% plus economic growth. Growth was so weak that many economists (mostly those on the left) started talking about secular stagnation. We were told it wasn’t the flood of new regulations or higher taxes that were holding back the economy, it was a phenomenon beyond the control of government.
After only three quarters of a more pro-growth administration and Congress, secular stagnation looks less credible and bad policy looks like it was to blame all along.
Where is the evidence for such a claim?
According to the Atlanta Fed GDP Now Forecast, economic growth in the fourth quarter is on pace to surpass 3% for the third consecutive quarter. As you can see in the chart below, the American economy hasn’t put together three consecutive quarters of 3% plus growth in over a decade.
Pro-growth leadership in government has had a profound impact on the economy. Business and consumer confidence has soared, companies are again making long-term investments, and GDP growth is humming.
