Currently, the economy is in its ninth year of recovery. This year, during the first quarter, the economy expanded at a very low rate of 1.2%. However, during the second quarter, the economy grew at 3%; which is the highest the rate has been in two years.
President Trump acknowledges the increase of the expansion rate throughout this year, but is not yet totally satisfied. Trump's original goal for the economic growth rate was 4%. He still believes this is very achievable. In his latest speech in Springfield, Montana, Trump said, "we can go much higher than the 3 percent." Trump also stated that countries overseas are unhappy with growths of 7, 8, and 9 percent. On the contrary, no major economy is actually growing at those rates. Last year, the fastest-growing economy was China, with 6.7% growth.
President Trump's goal of 4% economic growth is probably unattainable anytime soon. Currently, the workforce in the United States is aging. Less people in the workforce could cause less overall expenditure. Also, productivity growth is low right now. Although, if the economy does continue to grow at the rate it did last quarter, then Trump's goal will be met.
https://www.nytimes.com/2017/08/30/business/economy/gdp.html
I think 4% growth is fairly reasonable, with some natural disasters and other events in may be difficult. The aging labor force is an issue, and hopefully the number of college students and just working age teens will help with that. I don't think we will grow as fast as China, but if we are able with interest rates, and wages to continue with steady growth then 4% may not be far off. Economic growth is important right now, hopefully we can continue to recover from the 2008 crisis and leave that behind us.
ReplyDeleteA 4% growth rate is a good goal for our economy. Trump has been talking about and developing ways to improve our below-average system. Although our workforce is aging, we have an influx of potential from the upcoming youth. The retiring of these older workers will open doors for younger generations. I also believe that Trump will create more jobs by increasing government spending. Doing so would not only create jobs, but help our GDP increase significantly.
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