After an allegedly “shocking” report broke this week showing that economic growth climbed to 4.1 percent in the second quarter, conservative commentator Rush Limbaugh dropped a truth bomb about the report: There was nothing shocking about it.
“This 4% GDP is exactly what should happen based on the policies that Trump implemented,” he noted on his afternoon radio program Friday.
He then listed President Donald Trump’s policies, starting with his massive deregulation of the administrative state, which Limbaugh noted “allows capital money to start moving around in creative and innovative ways.”
Correct. The National Bureau of Economic Research points out that “regulatory reforms — in particular those that liberalize entry (into the marketplace) — are very likely to spur investment; tight regulation of product markets restricts investment.”
In 1960, there were approximately 20,000 pages in the Code of Federal Regulations. Today there are over 185,000 pages, as seen in the Roosevelt Room.
Today, we CUT THE RED TAPE! It is time to SET FREE OUR DREAMS and MAKE AMERICA GREAT AGAIN! pic.twitter.com/teAVNzjvcx
— Donald J. Trump (@realDonaldTrump) December 14, 2017
The conservative radio show host then moved on to the president’s historic tax cuts: “People earning more, getting increases, getting bonuses, paying less in taxes. More disposable income, meaning there’s more commerce.”
“There’s more goods and services that people are accessing and buying; the people who sell those goods and services are doing better because people are buying their products and services.”
It’s a recursive cycle: People earn more because of reduced taxes. These people then spend more on goods and services. The companies that produce/provide these goods and services then earn more revenue. Some of this increased revenue is then applied to employee wages, meaning the employees of these companies now earn more. Now guess what they do with their increased earnings. They spend more on goods and services. See how it works?
“It’s a self-feeding growth formula, and it works every time it’s tried,” Limbaugh continued. “There’s nothing accidental. There’s nothing coincidental here, and there’s nothing really magic. It’s just plain old 2 + 2 = 4 common sense.”
It’s as simple as apple pie. The problem is that, not only do thick-skulled Democrats not understand this simple formula, but they also want to put it to a halt.
“The Democrat Party is hell-bent on you believing that something here is wrong and it’s really only the rich that are benefiting, and you’re getting screwed no matter what your paycheck looks like. No matter how happy you are, no matter what your content level is, you are getting screwed,” Limbaugh said later in his broadcast Friday.
He wasn’t wrong. The same left-wing “experts” who laughed when the president once promised 4 percent economic growth now claim the current growth rate can’t be maintained.
CNN headline from October 11, 2016:
“Trump promises 4% growth, economists say ‘no way”
— Charlie Kirk (@charliekirk11) July 27, 2018
“The experts are now saying, ‘We can’t sustain 4% economic growth! This is not possible. It’s not possible to get this. This has to be because of soybeans.’ They’re saying this is unsustainable,” Limbaugh explained.
“They’re very worried about the next report. The next report on gross domestic product is due 11 days before the November elections, and they are going to be biting their nails and sweating bullets waiting the next GDP report, because it can go higher.”
If it does indeed go higher, it’ll destroy the left-wing narrative that tax cuts only benefit the rich. And once that narrative has finally been crushed, the Democrats will be in deep trouble.
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