tag:blogger.com,1999:blog-2499715909956774229.post264956136700939289..comments2024-03-22T22:37:02.639-07:00Comments on Stephen Williamson: New Monetarist Economics: Should You Be As Excited About GDP Growth As Donald Trump Claims to Be?Stephen Williamsonhttp://www.blogger.com/profile/01434465858419028592noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-2499715909956774229.post-33211217160219952052018-08-04T11:31:03.532-07:002018-08-04T11:31:03.532-07:00The article refers to gross domestic product (&quo...The article refers to gross domestic product ("GDP") and the factors relating to the growth in GDP in the current quarter and in future periods. Mention is made of total factor productivity ("TFP") growth and population growth as determinants of future GDP growth. Missing in the discussion is the role of capital accumulation and the contribution capital inputs make to GDP growth. <br /><br />Given the economic history of the USA, capital has had a significant role in both the expansion of the territorial jurisdiction of the USA and the economic heft of the American economy in world affairs. It would be difficult to overlook this role and the contribution it might make in future years in terms of productivity growth and population living standards.<br /><br />To the extent that tax policy impairs or promotes capital investment that bears on production, choices made by an administration will serve either to retard or to advance GDP growth. Government choices have a bearing on GDP growth rates and the sign of those growth rates.<br /><br />To the extent that the administration has made and will continue to make policy choices that directly bear on economic growth domestically and internationally, they deserve to reap the kudos or the jeers according to the outcome. The president being a political actor in every sense of that term, will, rightly or wrongly, claim credit or deflect blame according to his wont. As each former president has done the same, to greater or lesser degree, in more or less thunderous terms, it is the lot of the general public and those who have an interest in the subject to uncomplainingly put up with it in the knowledge that this too shall pass in due course.<br />Old Eagle Eyehttps://www.blogger.com/profile/05270080708077871311noreply@blogger.com