How Trump’s economy stacks up – By Courtenay Brown, Danielle Alberti (Axios) / Feb 17 2020
Average economic growth under President Trump has outpaced the growth under Barack Obama, but not all of his recent predecessors.
Why it matters: GDP is the most comprehensive economic scorecard — and something presidents, especially Trump, use as an example of success. And it’s especially relevant since Trump is running for re-election on his economic record.
Between the lines: Economists dispute how much credit presidents can take for a booming or sagging economy under their watch. There are factors that can boost or reduce growth outside of their policies.
- Where it stands: Unlike other presidents, Trump inherited a steady economy that’s since entered the longest stretch of growth in history. Interest rates remain low. Growth picked up in the wake of the 2017 tax cuts, but now the pace has moderated.
What he’s saying: “Our economy is the best it has ever been,” Trump said earlier this month in his State of the Union speech.
- But some aspects of the Trump economy, like wage growth and business investment, pale in comparison to other periods.
- While solid, “this is not a gangbusters economy,” Nathan Sheets, who’s held roles at the Treasury Department and the Federal Reserve, tells Axios.
- There have been periods with “high growth, low inflation, rapid productivity, and the gains from growth were being broadly shared across society. That was gangbusters,” says Sheets.
Source: “Presidents and US Economy”, Trump figures through 2019 courtesy of Alan Blinder; Note: Data shows real GDP and Q1 growth in each term is attributed to the previous president; Chart: Axios Visuals
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