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Economic Growth Stronger than Expected

August 30, 2018 By Debbie Young

President Donald J. Trump and First Lady Melania Trump participate in a Fourth of July picnic with military families at the White House | July 4, 2018 (Official White House Photo by Andrea Hanks)

President Trump’s cutting the federal corporate income tax rate from 35% to 21% is working better than reported earlier, writes James Freeman in the WSJ.

The theory behind the December law, based on numerous studies conducted over a decade by current Chairman of the White House Council of Economic Advisers Kevin Hassett and others, was that lower rates trigger more investment by businesses. This investment in turn makes workers more productive and allows them to earn more money.

The Commerce Department reports that economic growth in the second quarter was even stronger than originally estimated and the Journal notes that among the highlights is “fixed nonresidential investment rising at a 8.5% annual rate, up from an earlier estimate of 7.3%.”

Read more here.

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Debbie Young
Debbie Young
Debbie, our chief political writer of Richardcyoung.com, is also our chief domestic affairs writer, a contributing writer on Eastern Europe and Paris and Burgundy, France. She has been associate editor of Dick Young’s investment strategy reports for over five decades. Debbie lives in Key West, Florida, and Newport, Rhode Island, and travels extensively in Paris and Burgundy, France, cooking on her AGA Cooker, driving through Vermont and Maine, and practicing yoga. Debbie has completed the 200-hour Krama Yoga teacher training program taught by Master Instructor Ruslan Kleytman. Debbie is a strong supporting member of the NRA.
Debbie Young
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