Trump is Right: Economic Growth is Pathetic

Opinion polls consistently show Americans disappointed and dissatisfied with the nation’s economy.  The chart below confirms their opinions are grounded in objective reality.

On Friday, July 29 the government’s Bureau of Economic Analysis published it’s second quarter GDP report.  In April, May and June the economy grew by a pathetic 1.2%.  Previous quarters were revised downward.

With President Obama’s support Hillary Clinton has been campaigning on the claim that things really aren’t as bad as Donald Trump and the Republicans say.  So, this report should have been a major setback for her and a boost for the Trump campaign.  However, instead of holding Mrs. Clinton and the Democrats accountable for the anemic economy Mr. Trump diverted the media to seven days of wall-to-wall coverage of more of his self-inflicted wounds.

But, Trump came back strong as he presented his economic plan in a televised speech to the Detroit Economic Club on March 8.  Among several criticisms of the economic status quo was this:

Let’s look at what  the Obama-Clinton policies have done nationally. Their policies produced 1.2% economic growth, the weakest so-called recovery since the Great Depression.

With these words Mr. Trump was right on point. 

The Obama administration insists that any assessment of its economic record begin, not with his inauguration in January, 2009 but seven months later, after the recession ended and the post-recession recovery began.  Fair enough!  He did inherit the recession.

As it happens, this year’s second quarter marked the seventh anniversary of the Obama era (so-called) recovery.  Our handy charts put it in perspective.

As the charts above and below show we’ve just completed seven years of the weakest recovery since the government began the current system of quarterly GDP reports in almost 7 decades ago.   

And Trump was absolutely right.  GDP growth in the most recent quarter as 1.2%.  Average GDP growth over the seven year Obama recovery was 2.1%, compared to an average of 4.7% for all post-recession, recovery quarters since 1948.