Monday, Congresswoman Martha Roby, R-Montgomery, said in an email to constituents that recent economic growth numbers are, “proof that our pro-growth policies are working.”
“Our economy grew by 4.1 percent in the second quarter of 2018, marking the fastest economic expansion in this country in nearly four years. More proof that our pro-growth policies are working for the American people!,” Rep. Roby said.
In 2016 President Donald J. Trump (R) was elected President.
With a Republican President, the Republican controlled Congress began passing legislation to overturn regulations that the Barack H. Obama administration passed during its last six months in office. President Trump and his appointees also began passing new, less restrictive regulations. The repeal and overturning of onerous regulations helped the profitability of a number of companies. Rising profits led to more business investment. More business investment helped the profitability of companies that supplied that demand. Employment numbers improved, stock market values rose, and the economy grew.
The Republican controlled Congress then passed the Tax Cuts and Jobs Act in 2017. Businesses were able to keep more profits. More profits were invested in the businesses. Businesses bought more equipment, buildings, locations, etc. Payrolls increased. Unemployment decreased and the growth rate of the American economy has nearly doubled to 4.1 percent. According to a recent report by Career Builder, 58 percent of employers plan to give employees raises before the end of 2018.
“So much for ‘secular stagnation,’ the Wall Street Journal Editorial board wrote. “You remember that notion, made fashionable by economist Larry Summers and picked up by the press corps to explain why the U.S. economy couldn’t rise above the 2.2 percent doldrums of the Obama years. Well, with Friday’s report of 4.1 percent growth in the second quarter, the U.S. economy has now averaged 3.1 percent growth for the last six months and 2.8 percent for the last 12. The lesson is that policies matter and so does the tone set by political leaders.”
Pres. Trump said after the 4.1 percent growth numbers for the second quarter were announced, “These numbers are very, very sustainable — this isn’t a one-time shot.”
Republicans argue that their policies are responsible for the rising economic tides. Democrats meanwhile complain that the wealthiest Americans have benefitted the most and credit Pres. Obama for the economy and express concerns that President Trump’s trade policies could lead to a trade war that could derail the economy.
Congresswoman Martha Roby represents Alabama’s Second Congressional District. She is seeking her fifth term in the Alabama House of Representatives. She faces Tabitha Isner (D) in the general election on November 6.