Trump is trying to stimulate the economy when the economy is booming.
Noah Rothman writes at Commentary that Trump’s economic proposals are “Keynesianism without a crisis.” The economy is chugging along, growing at 3.2 percent in the third quarter, and unemployment is below 5 percent. The U.S. has outperformed its peer competitors in Europe and North America over the past 4 years, topping France and Germany in GDP growth every year since 2012 and growing faster than Canada and the UK in 2015. This is important to note, because as economic critics point to 3% and 4% growth in the 1970’s and 80’s, they neglect to point out that the entire developed world has been growing slower since then. It’s harder to keep up a high percentage rate of growth on a bigger total.
But an even more important point of dispatch is that conservative critics and “populists” base their view on faulty emotional assumptions and incorrect data. Trump, for instance, said to Time that, the government needs to “prime the pump” “in order to get jobs going and the country going, because, look, we’re at 1% growth.”
In fact, the GDP has grown at 2.4% for each of the past two years. The slowest it grew since 2008 was 1.5% in 2013, still considerably faster than France and Germany. Moreover, quarterly economic GDP growth has never grown slower than 1% for the past three years. Trump is doing what he is so good at: making shit up.
But it’s not just Trump who is the problem. For most of Obama’s term, Republican and conservative “populists” have resorted to counter-factual appeals to the pain of the working class and consumers no matter what the economic conditions.