The Wall Street Journal | By: Mick Mulvaney | July 12, 2017 6:41 p.m. ET:
If the Trump administration has one overarching goal, it’s to Make America Great Again. But what does this mean? It means we are promoting MAGAnomics—and that means sustained 3% economic growth.
For most of our nation’s modern history, a healthy American economy meant one that grew at roughly 3.5%. That was the average growth rate between the late 1940s and 2007. Since then, it has hardly topped 2%.
The difference between those two growth rates is staggering. If the American economy had grown at only 2% between the end of World War II and 2000, average household income would have been roughly $26,000 instead of $50,000.
Over the next 10 years, 3% growth instead of 2% will yield a nominal gross domestic product that is $16 trillion larger, federal government revenues $2.9 trillion greater, and wages and salaries of American workers $7 trillion higher.
For merely suggesting that we can get back to that level, the administration has been criticized as unrealistic. That’s fine with us. We heard the same pessimism 40 years ago, when the country was mired in “stagflation” and “malaise.”
But Ronald Reagan dared to challenge that thinking and steered us to a boom that many people thought unachievable. In the 7½ years following the end of the recession in 1982, real GDP grew at an annual rate of 4.4%.
That is what a recovery looks like, and what the American economy is still capable of achieving.
The focus of MAGAnomics is simple: Grow the economy and with it the wealth of, and opportunity for, all Americans. It does that by focusing on fundamental principles that made the U.S. economy the greatest engine of prosperity in the history of the planet…
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