“It can’t be done”, they said. “There’s no way Trump can achieve 4.0% economic growth” they said. The Congressional Budget Office said economic projections were “improbable”, they said…. “Impossible”, they said.
Yeah, well, Donald Trump said: “Impossible is just the starting point“. And now:
NEW YORK (Reuters) – The U.S. economy is on track to expand at a 4.0 percent annualized pace in the third quarter with inventory investment contributing 1.12 percentage points to growth, the Atlanta Federal Reserve’s GDP Now forecast model showed on Thursday. (read more)
How is this possible? Well, if you’ve never had to wash your hands with Lava – it might seem impossible. For those who have washed with Lava, it’s simple common sense.
The Gross Domestic Product (GDP) growth, is the growth in value of all goods and services produced within the economy over a specified period of time. A key part of that equation is the sum total of exported goods minus imported goods is part of the measure. Only the stuff created in the U.S. increases the growth dynamic. If you import more, the GDP shrinks. It’s simple arithmetic.
If you grow exports, and maintain a constant on imported products, the net lowering of the trade deficit adds to GDP growth. It’s not a hard equation. If our economy is making more stuff, our economy is growing.