While everyone has been celebrating the Dow surging past 20000, GDP for the 4th quarter expanded at an inflation and seasonally adjusted annual rate of 1.9%. An article from the wall street journal goes into further detail regarding GDP growth highlighting what may in store for the future.
The latest data underscored the obstacles to stronger growth facing Mr. Trump, who has said he will raise the pace of expansion to 4% a year. Friday’s report also provided fodder for Republicans arguing that stronger growth is needed and possible. “Americans spoke loudly and clearly in November telling the world that President [Barack] Obama’s ‘new normal’ was unacceptable,” said Rep. Pat Tiberi (R., Ohio), chairman of Congress’s Joint Economic Committee. “That’s why Republicans are ready to unleash America’s economic potential.”Federal Reserve Chairwoman Janet Yellen last week pointed to “a variety of forces depressing both supply and demand,” including slow growth in the size of the labor force and sluggish worker productivity. She said she expected they would continue to restrain growth for years to come.
Is 2% growth in GDP the new normal? Did the previous President hinder growth? Will republican legislation really break this trend?
