Friday, April 5, 2019

Trump's misleading spin on the 2018 GDP growth rate.

    Trump has publicly reported a GDP growth of 3.1% under the four quarter by four quarter calculation. In which the U.S Bureau of Economic Analysis reported real GDP has increased by 2.9% from 2017 to 2018 annual level. Trump has commented on the fact based on the calculation from an annual level to be “fake news” and that's where Trump takes a misleading turn. The way he frames this issue and attacks the press is what's outstanding.
    The problem with Trump is that he had hoped to beat the 3% growth and hoped to compete with Obama’s GDP growth from prior years. According to The Washington Post, https://www.washingtonpost.com/ the White House Council of Economic Advisers came to the rescue by offering a calculation that compared the fourth quarter of 2018 with the fourth quarter of 2017. This calculation, know as 4Q/4Q, comes to 3.1 percent, allowing Trump to claim victory. In comparison, the 4Q/4Q makes more sense as a measure of annual growth than the traditional calculation. “The annual-average-to-annual-average growth rates reflect what happened in the preceding year as well as what happened during the year in question” “In contrast, the fourth-quarter-to-fourth-quarter growth rates reflect only what happened during the specified year.”
    Gross domestic product is used to measure the market value of all goods and services produced in a year. Many educated Americans take into consideration these measurements to analyze many statistics. Studying the economy has many turns as to where and how money is being made and issued. In the current research, poverty continues to fall and Trump's tax cut and huge spending bill have pushed the gross domestic product past expectations, causing the deficient of the GDP ratio wider making it harder for the government to respond to the next economic crisis.
    Trump has an ordinary attitude towards many government policies which makes a lot of citizens difficult to cope with including myself. For example, Under Trump 93,000 jobs have been outsourced for his own fault which does not help the economy as a whole.  Although, he is our president with many supporters and a strong team he might be able to outdo the laws as many times as he, please.

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