President Trump made economic growth a central component of his campaign platform, and promised that he would deliver three percent economic growth annually—something the Obama administration was unable to achieve even once.
Thus far things are looking good: Trump may just be able to fulfill his promise. CNBC reports:
The United States economy is in for a major upgrade, according to financial analysts. A second estimate on third quarter gross domestic product growth has predicted major growth — the largest jump since 2014, and the first time the economy has posted two straight quarters of growth since the same year.
According to CNBC, the GDP “expanded at a 3.3 percent annual rate” over the summer, which is .3% more than originally thought. Everything grew, from product manufacturing to corporate profits.
This is welcome, but not entirely unexpected news. Economic growth doesn’t just depend upon hard factors, optimism and hope also play a big part—Trump has provided plenty of both.
For example, when President Trump announces to the world that the “era of economic surrender is over” this sends a powerful signal to investors and consumers alike: America is open for business. People are more willing to invest if they think the time is right, if they think they can make money. Part of President Trump’s job is to convince them:
It is also worth mentioning that the Bureau of Economic Analysts attribute some of the growth to a decrease in imports—that is, import substitution. President Trump’s animus towards foreign producers is helping American businesses compete, and regain lost market share—particularly in the auto industry.
To this end, private investment for corporate investment has increased by $60 billion in the third quarter.
Ultimately, America will need substantive legislative change for the “Trump effect” to be cemented into a permanent legacy—and to whittle down the trade deficit. But until then, all good news is welcomed.