Raymond Richman - Jesse Richman - Howard Richman
Richmans' Trade and Taxes Blog
[Here's the text of our post. You can also read it on the American Thinker website at this URL.]
by Howard Richman, Raymond Richman and Jesse Richman
The 3.2% economic growth rate for the first quarter, reported as the “advanced estimate” by the Bureau of Economic Analysis on Friday, caught everyone by surprise. During both the George W. Bush and Obama administrations, the average quarterly economic growth rate was only 1.9% per year. But during the 9 quarters that Trump has been president, the economic growth rate has averaged 2.8% per year, almost a full percentage point higher.
Anybody who wants to know how the American economy would look today if someone espousing policies like Obama’s were still president only need peek over our northern border. Canadian Prime Minister Justin Trudeau stayed in Obama’s Trans Pacific Partnership trade agreement and in Obama’s Paris Climate Accord, despite Trump pulling the US out of both agreements. And, how has Canada been doing? Just 1.6% GDP growth over the latest year and 0.1% growth during the latest quarter!
Middle Class Income
Whenever GDP grows, American income grows at about the same rate. But income growth is not evenly distributed. At the end of the Bush presidency, median household income (after subtracting for inflation) was at about the same level as before Bush took office.
When running for office in 2008, Obama correctly claimed that the rich were getting richer, but those in the middle class were not benefiting. So how did the middle class do under Obama? Again, median household income failed to grow!
In January 2017, after the presidencies of both Bush and Obama, median household income (after subtracting for inflation) was actually 1.3% lower than it had been in January 2000. (Our statistics for median household income come from Sentier Research, which has been calculating and graphing household income as it unfolds.)
How is Trump doing with middle class income? Pretty well! Median household income has risen at a 2.5% annual clip since Trump became president, approximately the same rate that GDP has been growing. In fact, median household income is now higher than ever before! How is Trump doing it?...
Reciprocal Trade Act
Here is a press release from the Coalition for a Prosperous America concerning a new bill introduced in Congress. The press release can be accessed at: https://www.prosperousamerica.org/cpa_endorses_reciprocal_trade_act_hr_764
Journal of Economic Literature:
Atlantic Economic Journal: