Thursday, January 26, 2017

Prosperity and President Trump's Political Fate:

"In truth, we are on the cusp of a great experiment. For decades, conservatives, both traditional and pro-growth supply-siders, have preached that deregulation, reasonable and predictable Federal Reserve interest rates, reduced government, a radically simplified and pruned-back tax code, new incentives for investment, an open energy market, and a can-do psychological landscape that encourages entrepreneurship will make the economy soar at rates of 4 percent GDP and more.
"We shall soon see. If Trump unleashes American know-how and strengthens the economy, then his cultural and domestic agendas, as well as his personal demeanor and language, however radical and jarring, will probably be accepted. In contrast, if he blows up the deficit and sees interest rates spike at Carter levels and the cost of debt service soar, if he allows unemployment to grow -- while never exceeding Obama's dismal economic growth rates -- then the Trump agenda will stall and the media will be liberated to obsess over the tweets, gaffes, and bombast of every nanosecond of his presidency. 
"Economic growth cuts through political orthodoxy; economic stagnation intensifies it. Regrettably or not, prosperity, not character per se, determines a president's political fate." - Victor Davis Hanson
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