Trump Loves Growth

Knowing President Trump as I do, I’m quite certain that if he had his way, he would implement the most stimulative economic policies possible in order to grow the economy. Take it from me, Mr. Trump loves growth. And he’s right.The president is not a guy who wants limits to growth.In fact, he’s really not a guy who even understands limits to growth.I remember during the first term he used to ask me why places like Communist China or India could grow at 10 percent — and America can’t.As I recall, sometime in I think it was 2018 after the tax cuts were in place, how happy he was that we were scoring 4 percent growth — at least for several quarters before the Fed started raising rates and getting in the way of his growth policies.That’s one of the great things about Mr. Trump. He’s a growth guy. He loves to build new buildings, new factories, a new America. And he won’t let monetary bureaucrats stand in his way. He’s a rising-tide-lifts-all-boats guy.Why shouldn’t we grow fast? Anything less than 3 percent growth is a failure. The policy must be changed. Cut taxes, deregulate, build factories, produce energy, get interest rates down to finance all of it.Give everybody a chance to climb the ladder of success — provided they work for it.Give them opportunity. Reward success. All of that is Trumpian.So that’s why it’s so pathetic that you have all these hidebound government agencies like the Federal Reserve, or the CBO, or for that matter the IMF, or the World Bank — who are all telling us America must grow less than even 2 percent. Can’t even grow at 2 percent.There’s no entrepreneurial opportunity in a below 2 percent economy.And yet all these Ph.D. geniuses keep telling us it’s the best we can ever do.No it’s not. That’s wrong.For most of American history, we actually have grown at 3.5 percent per year. And that’s after inflation.Go back and look at the historical tables.You’ve got them for the 19th century, 20th century, post-World War II — most of the time we grew at least between around 3 percent to 4 percent.And we recovered from setbacks like deep recessions, but then we would grow by 8 percent, 10 percent, or 12 percent.For some reason, that kind of economic exuberance seems to have ended in the past couple of decades.That’s when the big-government central planners seemed to somehow gain control of the levers again.That’s why it’s so pathetic every time I see the Federal Reserve with a 1.8 percent long-term growth rate.That’s an admission of failure. That means their policies have failed and the policies must be changed.Now for folks that don’t agree with me, please go back and look at the historical data. There’s plenty of it.Look at the long-term trends and you’ll see what I mean.This is why Mr. Trump gets so impatient with the Fed or anybody else that tells him we can’t grow rapidly. Of course we can. And he knows we can.It’s part of the American spirit. It’s part of our economic DNA — as long as all the growth spigots are unlocked it will happen.And last point, when you get to 3 percent or 4 percent growth from the work of brilliant entrepreneurs who have always led this country, there will be no inflation because the growth absorbs money and prices. There’s never inflation when you have strong growth.I think Mr. Trump knows this intuitively.And that’s one of the many reasons why he wants to change government.Especially the central bank.From Mr. Kudlow’s broadcast on Fox Business Network.

Trump Loves Growth

Trump Loves Growth

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