Economy Roars On With 3.2% GDP Growth

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Posted by Tom Hebert on Friday, April 26th, 2019, 10:38 AM PERMALINK

America’s real GDP grew 3.2 percent in the first quarter of 2019, shattering industry expectations and showing that the GOP tax cuts and regulatory relief are continuing to have positive effects on the U.S. economy.

The Bureau of Economic Analysis report shows that expanded exports and increased private investment drove this economic upswing. This 3.2 percent growth is up from 2.2 percent real GDP growth in the fourth quarter of 2018, showing that the economy continues to charge ahead in leaps and bounds. Quarterly GDP growth has averaged 3 percent over the five quarters since President Trump signed the Tax Cuts and Jobs Act (TCJA) into law.

"More economic growth is not just a nice number. It means more jobs, higher wages, more opportunities and a stronger nation," said Grover Norquist, president of Americans for Tax Reform.
 

The BEA report also shows that disposable personal income increased by 3 percent, or $116 billion, in Q1 of 2019. Additionally, gross private investment is up by 5.1 percent.

This explosive growth comes alongside a host of other economic good news. According to the Bureau of Labor Statistics, over 2.6 million jobs were created in 2018, and nearly 5.5 million have been created since President Trump took office. Job openings sit at 7.6 million, a record high. The unemployment rate is a near-record low of 3.8 percent, and the number of people claiming unemployment benefits is at a 50-year low. Nominal wages have grown by 3.4 percent over the last year, a 10-year high. The stock market is also hitting record highs and the trade deficit is narrowing.

Home values have also remained stable, proving opponents of the GOP tax cuts wrong yet again. According to the left-wing Washington Post, home sales rose 12 percent in February, the largest month-over-month gain since 2015. Median home prices also rose 3.6 percent in February, a continuation of 7 years of month-over-month gains.

This economic report is yet another sign that the Trump tax cuts are working as intended. Contrary to Nancy Pelosi, who said that letting people keep more of their own money was “Armageddon,” the sky is not falling. Thanks to the Tax Cuts and Jobs Act, American is open for business again.

Photo Credit: Gage Skidmore

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