America’s Growth Agenda

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America’s Growth Agenda

The Trump administration’s massive deregulation effort coupled with enactment of the Tax Cuts and Jobs Act passed in December 2017, has already done wonders for the U.S. economy.

As highlighted in this issue’s trend #3, there are now more open jobs than there are “unemployed” people. Wages are increasing, and consumer and business confidence is rising with them. Preliminary estimates show real second quarter GDP growth to be 4.2 percent and the Trends editors predict it will be revised higher.

As highlighted in our July 2018 issue, Americans are already recognizing the benefits of the administration’s pro-growth agenda as represented by bigger paychecks, lower taxes and more opportunities.

In the area of deregulation, the Trump administration has been particularly aggressive in halting costly Obama-era regulations that were in the pipeline as of January 2017. And it has also been focused on minimizing the number of new regulations it creates. For instance, in 2017, most agencies issued dramatically fewer regulations than in 2016.

To-date the most effective regulatory shifts have been those associated with the North American Energy Revolution. In 2019, regulatory changes will pave the way for massive infrastructure projects. Private sector projects will move ahead as the ROI becomes more certain. Meanwhile public sector projects with bipartisan Congressional support will move ahead funded by the sale of superfluous government assets.

In the regulatory sphere, a great deal can be done without involvement from Congress. So, as the administration fills the final positions in the executive branch and appoints more growth-friendly Federal judges, this process will accelerate. Most likely these executive and judicial appointment will become easier in 2019, as the partisan make-up of the Senate becomes increasingly conservative.

Tax policy is just one component of a broader plan to reindustrialize the United States. That’s why the first round of tax cuts in 2017, was aimed primarily at business. The primary objective was encouraging capital investment and reshoring. We can already see how this has paid off in the form of the huge Foxxcon plant in Wisconsin and the enormous investments made in the U...

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