It’s Trump’s Economy Now. Por Stephen Moore e Arthur Laffer.
Mr. Obama might be justified in taking credit for today’s economy if his successor had adopted and carried on his policies. Instead, Mr. Trump has reversed nearly every Obama rule, edict and law that he can legally overturn. At its core, the Trump economic strategy wasn’t complicated: systematically repeal Mr. Obama’s “accomplishments”—the tax increases, the regulatory blitz on business, the welfare expansions, the war on American fossil fuels, and so on. As a result, the economy would pop like a cork pulled from a shaken champagne bottle.
Mr. Obama does deserve credit for the long and durable recovery. But it was a very shallow one that left much of the country behind. Our estimate of the “growth gap”—the difference between where the economy was in 2016 and where it should have been with a normal recovery—was an accumulated $2 trillion to $3 trillion in annual output. We felt confident Mr. Trump could recapture that lost output.
(…) As one of us (Laffer) used to tell Ronald Reagan : “Sir, you were blessed by the incompetent economic policies of your predecessors— Nixon, Ford and Carter.” So it has been for Mr. Trump. Yes, it is early in his presidency, and he could still foul up. We worry deeply about the negative effects of his tariffs and trade policy. He’s reversing the one thing that President Obama got right!
But Mr. Obama’s approaches to taxes, energy and regulation were wrongheaded. In that sense, they really did set up President Trump for this big economic rally—by giving him bad policies to repeal.