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What Trump’s Tax Cut Really Means for the US Economy
The Trump administration’s stated economic-policy objective is to increase growth in the United States from the post-financial-crisis rate of around 2% to at least 3%. In historical terms, achieving such growth is not out of the question. Real (inflation-adjusted) GDP growth exceeded 3% in 2005-2006 and 4% in the period from 1997 to 2000; and in each of the past two quarters, the economy has grown at an annualized rate above 3%. The question is whether that pace can be sustained. Despite low headline unemployment – 4.1% as of December – the US economy is neither at full employment nor constrained by labor ... (full story)