‘Nothing in today’s GDP report’ suggests the GOP tax cut is boosting economic growth
The Economic Policy Institute has some bad news for Republicans and America: “there is nothing in today’s GDP report to indicate that the tax cut is working to boost economic growth or investment.”
Against all previous evidence, Republicans once again premised their huge tax gift to the top 1 percent of income earners on the theory it would trickle down to the other 99 percent in the form of stepped-up investments.
Not only did overall growth of GDP slow in the first quarter of 2018 to just 2.3 percent, down from 2.9 percent in the last quarter of 2017, but the key measure of whether the GOP tax law did anything to boost the economy also lagged: business investment. That went down by two separate measures.
In the first quarter of 2018, the pace of growth of non-residential fixed investment actually decelerated slightly relative to the final quarter of 2017, falling from 6.8 percent to 6.1 percent.
investment growth also slowed when measured as the change from the same quarter in the previous year—falling from 5.4 percent in the last quarter of 2017 to 4.6 percent in the first three months of 2018.
Good thing Republicans mortgaged America’s future on a tax cut that isn’t helping anyone other than the nation’s wealthiest.
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