By Tyler Tate | April 11th, 2018
One year into a unified Republican government, Hoyas have a lot to be thankful for. The Republican’s free market, small government policies have created an economic boom resulting in more jobs, better financial security, and increased opportunity for Hoyas.
All indicators point toward a resuscitated economy. The 4.1% unemployment rate is the lowest in 17 years. Wages grew by 2.9%. Economic growth averaged 3.1% over the first full three quarters of Trump’s presidency.
This boom directly contrasts with eight years of President Obama’s failed big government policies. Obama’s advisors swore this level of growth was inconceivable.
Administration economists Lee Branstetter and Jason Furman respectively claimed 3% growth was “mathematically impossible” and that the US would be mired in “2% growth” for the next decade. Larry Summers, Obama’s National Economic Council Chairman, likened 3% growth to believing in the “tooth fairy.”
The former president’s economists were right that this level of growth was impossible- under their liberal policies.
President Obama presided over the longest stretch in US history lacking one year of annual 3% GDP growth. In total, GDP grew by 9% under Obama, compared to 18.8% for an average recovery. This stagnation’s impact is difficult to overstate. The bipartisan Senate Joint Economic Committee estimates that if Obama’s recovery had been average, per person income would be $3,339 a year higher. In other words, the average American is $278 a month worse off because of Barack Obama’s destructive economic policies.
This economic turnaround is a direct result of the Republican Congress and the Trump Administration. Two policies undergird the Republican boom.
First, the Tax Cuts and Jobs Act of 2017. The law slashed corporate and small business taxes, installed a one-time repatriation rate to recover profits stranded overseas due to punitive taxes, and provided real relief for Americans. Because of tax reform, more than 460 companies have passed on tax savings by giving their workers pay increases, larger retirement contributions, and bonuses. Utility companies have followed, slashing rates for more than 90 million Americans. Under repatriation, between $500 and $700 billion in offshore profits will flow into the US. This capital windfall provided the primer that is driving business investment and job creation. For example, Apple alone has announced 20,000 new jobs and $350 billion in new investments. Additionally, more than 90% of Americans are seeing higher take home pay. For example, a family of four earning $73,000 annually will receive over $2,000, and a single parent earning $41,000 annually will receive $1,300.
Second, deregulation. President Trump has cut 22 rules for each new regulation and halted countless others, saving consumers and businesses billions of dollars.
This effort is modeled after Florida’s deregulatory effort, which reduced regulations by 20% through eliminating 4,700 regulations. This initiative powered Florida to lead the nation in job creation. By contrast, new regulations enacted under Obama added an extra $100 million in operating costs for businesses each and every day of his presidency.
This November, a choice between these economies is on the ballot.
House Democrats have proposed a sweeping agenda that would eradicate these gains. Under their plan, tax reform would be reversed and taxes would rise by a whopping $1 trillion. Democrats have promised to use the Congressional Review Act to reinstate regulations costing the economy billions, and propose countless new rules to appease radical special interest groups. History shows that faced with the prospect of regulatory assault and astronomical tax hikes, businesses would decrease investment and slow job creation. Simply put, a Democrat wave this November would dismantle Republican’s progress and send the economy back into the Obama doldrums.
Our immediate economic future is at stake in this midterm election. A strong economy offers increased job choice, more opportunity, and financial security. In contrast, Democrat control promises a return to stagnation. Upon graduation, Hoyas would struggle to find decent jobs, salaries would stagnate, and upward mobility would be limited. Ultimately, there is only one party with an economic vision that supports our interests. Hoyas would be wise to vote for the Republican economy at the ballot box in 2018.