by Anna Manning
From John Locke Foundation’s Dr. Roy Cordato:
Since President Trump has taken office, economic growth rates have soared, 4.2 percent in the last quarter, and unemployment rates are the lowest in decades, at present 3.7 percent. In response to these impressive economic statistics, Democrats, and former President Barack Obama, in particular, have argued that, in spite of the fact that economic growth hovered around 2 percent during the Obama years, what is happening now is just part of an economic boom produced by Obama administration policies coming out of the 2008 recession.
The reality is that there was a clear and sharp change in the direction of economic policy between the Obama and Trump years, and it is this change – and not any policy that Obama was responsible for – that is generating the current growth and prosperity. The fact is that Obama’s tax, spending, and regulatory policies acted like a wet blanket covering the economy. Over the past two years, that wet blanket has been lifted, increasing economic freedom and thereby opening up new investment and entrepreneurial activities. And as is always the case, it is this kind of activity guided by consumer preferences that lift economies and generates new wealth and prosperity.
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