by Veronique de Rugy
The American Institute for Economic Research
Speaking to a CNBC reporter back in January, White House aide Larry Kudlow boasted about economic growth under President Trump (and blamed the Fed and others for its not being even higher): “You’ve gone from 1.5 percent to 2 percent growth. We had it going at almost 4 percent, then the Fed tightened. . . . We’re now down to 2.5 percent to 3 percent. I’m looking for faster growth.”
Kudlow was correct to prioritize economic growth. In a paper for the Mercatus Center, William Beach and I noted that if the economy were to grow at an inflation-adjusted rate of only 2 percent, it would take 35 years for the size of the economy to double. Three percent growth would double the economy in 23.5 years, and 4 percent growth would achieve that in less than 18 years.