President Trump’s biggest foe isn’t the liberal media.
Nor is it illegal immigrants spilling over a weak U.S. border.
It isn’t the Red Army amassing in the South China Sea, either.
Oh, and Obamacare looks quite innocent in contrast to the greatest threat to Trump’s presidency.
What could possibly be so daunting?
It’s simple, really…
Productivity.
Take a look at the chart below and you’ll notice that U.S. productivity growth is a crapshoot at best:
Are your eyes bleeding yet?
Bottom line: Productivity is far too weak for the American economy to hit desirable levels above 3%.
Yet you’ll recall that President Trump categorically insisted during his campaign that he would raise GDP growth anywhere from 3.5–4% on the low side to 5–6% on the high side.
Last week, I underscored the similarities between Trump’s and Reagan’s first days in office. Let’s hope the two administrations diverge on productivity. That is because productivity suffered during the Reagan years.
I asked my senior analyst, Martin Hutchinson, to see if President Trump has a card up his sleeve to boost productivity — the foremost driver of economic growth.
Leave A Comment