US GDP Looks Golden 💵
US GDP grew by 4.1% during the 2nd quarter of 2018, which is the fastest since 2014. Trump told reporters that the numbers suggest an "economic turnaround of historic proportions" that are “very, very sustainable — this isn’t a one-time shot.”
Remind me what GDP means
Gross Domestic Product, or GDP, is the monetary value for all goods and services produced within a country’s borders. It is split into four main categories: consumer spending, government spending, net exports, and business investments. The GDP is seen as the broad measure of a nation’s overall economic activity.
Western Journal: Breaking: GDP Growth Skyrockets to Highest in Nearly 4 Years
Washington Times: Trump says strong economic growth proves 'historic' turnaround
The right agrees with the President’s sentiment that the new numbers are evidence of his policies in action. They downplay the fact that “some” economists believe the increase is due to a rise in international exports to get ahead of future tariffs by pointing out that the spike in consumer spending would affect the GDP more. They credit “a competitive tax code, bold reforms to regulations, and encouraging news in trade” for spurring consumer spending.
The left believes the celebration is premature since many economists think GDP growth will slow later this year. They point out that a looming trade war could hamper growth. Several articles also quote economic think tanks to discredit Trump by reporting that there isn't enough evidence that says we weren't already on this trajectory since the last recession.
GDP and the midterms
The second quarter GDP figure gives Republicans an official number to back up the strong economy narrative that they are pushing in the run up the midterm elections. Analysts believe that it also "solidifies the Federal Reserve policy" to gradually increase US interest rates. It also raises the expectations for the third quarter economy where we may see the first effects of the recent tariffs. Third quarter figures will come out on October 26 and could become the October Surprise that decides the November election.
Potential drama come October
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