The economy grew by 3.1 percent in 2018 (between the fourth quarter of 2017 to the fourth quarter of 2018) and 2.6 percent in Q4 of 2018 according to data released by the Bureau of Economic Analysis.
This release shows the success of the Tax Cuts and Jobs Act in growing the economy and stands in stark contrast with the 1.9 percent average growth experienced under President Obama.
Since President Trump took office, 5.3 million jobs have been created with 304,000 jobs created in January.
Wages are increasing at 3.2 percent – a ten-year high. Labor force participation is improving after hitting 40-year lows under President Obama.
In the months following passage of the TCJA, the U.S. was named the most competitive economy in the world.
In the past year, the unemployment rate for key demographics including women, African-Americans and Hispanics have hit record lows.
This strong economic growth is also improving the nation’s fiscal health. CBO has found that 0.1 percent in revenue equals 1.4 percent in GDP growth and over $400 billion in revenue over a decade, and in the past they have stated that 0.1 percent in GDP equals $300 billion.
This means that economic growth of higher than the 1.7 percent predicted by CBO will net the federal government trillions of dollars in higher revenues over 10 years.
While the Democrats continue to claim the GOP tax cuts are not working, the latest economic growth figures prove otherwise. GDP growth is up, new jobs are being created, and wages are rising.