The US economy has absolutely exploded in the second quarter of 2018 with the gross domestic product (GDP) climbing an astonishing 4.1%, almost doubling from the 2.2% recorded in the first quarter of this year. It is a pretty astonishing economic turnaround that is being hailed as a victory from every different corner of the mainstream media.
CNN economy reporter Lydia DePillis wrote that “by many metrics, the United States economy is in excellent shape,” adding: “unemployment is near an 18-year low, factories are seeing more orders, and exports are surging.”
More from the Daily Wire:
The booming rate is the highest since the third quarter of 2014 and just the third-highest since the Great Recession began in 2008. The running four-quarter average is 3.1%, considered by economists to be a very strong number.
But that wasn’t enough for the man widely credited with achieving the astonishing figures.
“We’re going to go a lot higher,” said President Trump as he lapped up the new number in an address on the South Lawn of the White House. “As the trade deals come in one by one, we’re going to go a lot higher than these numbers, and these are great numbers.”
We have accomplished an economic turnaround of HISTORIC proportions! pic.twitter.com/vnmMtPv0kk
— Donald J. Trump (@realDonaldTrump) July 27, 2018
He added: “We’ve accomplished an economic turnaround of historic proportions. Once again, we are the economic envy of the entire world.”
So how has this economic turnaround happened? Many experts believe it is due to Trump administration’s tax cuts combined with a sustained growth in GDP.
Private business investment has surged from 1.8 percent the year BEFORE I came into office to 9.4 percent this year — that means JOBS, JOBS, JOBS! pic.twitter.com/evO63CpqPP
— Donald J. Trump (@realDonaldTrump) July 27, 2018
“When you drop taxes and increase spending, even if some of it is saved rather than spent, it boosts growth,” Jim O’Sullivan, chief economist at High Frequency Economics, told CNBC. “Ultimately, that boost won’t last forever, and of course you’ve added to the government debt. But there’s no question that it’s stimulative.”
But is a long-term growth in the economy a real possibility? National Economic Council chairman Larry Kudlow seemed to think so when he took the podium on the White House South Lawn.
“This is a boom that will be sustainable as far as the eye can see,” he declared. “This is no one-shot effort.”