Thursday, February 22, 2018
GROWING THE AMERICAN ECONOMY: THE ECONOMIC REPORT OF THE PRESIDENT
THE WHITE HOUSE
Office of the Press Secretary
“America is open for business, and we are competitive once again.” – President Donald J. Trump
Read the Economic Report of the President here.
A GROWING ECONOMY: President Donald J. Trump’s pro-growth policies are reviving the United States economy, and the Economic Report of the President (ERP) shows a path for continued growth.
· The Trump Administration is the first since that of President Ronald Reagan to see positive economic growth exceed its first-year forecast.
o In 2017, the United States economy saw 2.5 percent growth in real gross domestic product (GDP), up from 1.8 percent in 2016.
· Growth helped the United States economy add 2.2 million nonfarm jobs in 2017, as American workers saw the lowest unemployment rate since 2000 at 4.1 percent.
· The White House Council of Economic Advisers (CEA) projects economic growth will increase to 3.1 percent in 2018, remaining above 3 percent through 2020 and adding a cumulative $1.1 trillion to the economy.
o If fully implemented, President Trump’s economic agenda would lead to 3 percent annual GDP growth on average throughout the next decade.
TAX REFORM IS DELIVERING RESULTS: President Trump’s tax cuts are benefiting United States workers and businesses, providing long-term benefits and putting America on a path to greater prosperity.
· The CEA projects that President Trump’s corporate tax reform will lead to a $4,000 annual wage increase for American workers.
· The Tax Cuts and Jobs Act’s (TCJA) reforms and cuts to the individual tax code will raise GDP by an estimated 1.3 to 1.6 percent over the next three years.
· To date, over 370 companies have announced new investments, raises and bonuses, or other benefits as a result of tax reform that will positively affect 4.1 million workers.
o Through January, the CEA tallied $190 billion in new investment projects that were related to the passage of the TCJA.
REDUCING RED TAPE: By eliminating costly, unnecessary, and ineffective regulations, President Trump is freeing the United States economy.
· President Trump is prioritizing the cutting of burdensome red tape and has ordered Government agencies to eliminate two old rules for every new one.
o In the first eight months of the Trump Administration, Federal agencies issued 67 deregulatory actions and just three regulatory actions, far exceeding this two-for-one goal.
· According to the CEA, the economics literature indicates that excessive Government regulation places a drag on the American economy, slowing productivity and stifling entrepreneurship.
o The Obama Administration’s overregulation likely played a role in slow economic growth rates of the last eight years.
BUILDING A STRONGER AMERICA: President Trump wants to rebuild our Nation’s infrastructure by working with State and local governments and the private sector to spur new investment.
· The CEA estimates that a $1.5 trillion investment in infrastructure, as proposed by the President, could add approximately 0.1 to 0.2 percentage points to economic growth over the next decade.
· The CEA finds that growth will be encouraged through a plan that streamlines the permitting process, encourages the prioritization of spending, and optimizes use of infrastructure assets.
FAIR AND RECIPROCAL TRADE: President Trump is standing up for American workers and businesses, enforcing the rules and ensuring that trade deals are fair and reciprocal.
· American producers face higher barriers to selling their products abroad than competitors do selling products in the United States.
o President Trump is seeking to break down barriers to United States exports and crack down on unfair trade practices.
o Given America’s comparative advantages, American energy and agriculture sectors are well-positioned to benefit from these policies and increase their exports to the rest of the world.
· President Trump is also seeking to improve existing United States trade deals that did not achieve the intended result and negotiate new ones that will break down barriers to United States exports.
INNOVATION IN HEALTHCARE: The Trump Administration is focusing on policies that will promote competition, improve health outcomes, and lower healthcare costs for Americans.
· Competition, choice, and innovation are key to improving America’s healthcare system.
o Obamacare drove up costs and significantly curtailed choices of coverage options. Taxpayers have spent an enormous amount expanding Medicaid, without a substantial benefit to population health.
o Freeing consumers and providers from excessive government regulation and promoting competition through healthcare markets will lower prices and increase choice in order to improve our national quality of life.
· The CEA estimates that Americans pay more than 70 percent of the world’s patented biopharmaceutical profits among developed nations funding drug innovation.
o Policies must be developed to lower drug prices for Americans and to encourage pharmaceutical companies to have other countries pay their fair share of development costs.
DEFENDING AMERICAN CYBER SECURITY: With billions of dollars lost each year to cyber-crime, American cybersecurity is of paramount importance to our economic well-being.
· Using the most recent data available, the CEA estimates that malicious cyber activity lowered United States output by as much as $109 billion in 2016.
· Even as information technology has increased in importance to American economic interests, the ERP indicates that the market alone may not provide sufficient incentives to invest in cybersecurity.
· The ERP underscores the ever-growing importance of public-private cybersecurity partnerships, in order to manage and mitigate the risks associated with our modern economy.