Steve Moore & Kevin Brady on US Economic Growth and Fed Economists

Economic Growth Discrepancies

• 📈 The U.S. economy is showing robust growth, with figures nearing 4%, yet institutions like the Federal Reserve and Congressional Budget Office are projecting much lower rates (1.5-1.6%).
• 🎯 Steve Moore expresses frustration that economists at these institutions, despite their advanced degrees, seem unable to accurately assess or forecast the real-world economic performance.

Pro-Growth Policies and Their Impact

• 🔑 Kevin Brady highlights that lower tax rates, particularly for investors, and the removal of burdensome regulations are key drivers of economic expansion.
• ⚡ The Trump administration's focus on energy policy and initiatives like setting a goal for 5 million new apprenticeships are seen as pro-growth measures.
• 📊 Business investment is reportedly growing faster than consumption, a trend attributed to supply-side policies that increase the availability of goods and help bring down prices.

Critiques of Economic Forecasting

• 📉 Past predictions of economic depression and stock market crashes following Trump's election are recalled as inaccurate.
• 🧐 Moore questions why Federal Reserve economists, with hundreds of PhDs, are so far off in their GDP forecasts, suggesting they are not observing the real economy.

Inflation and GDP Deflator

• 📊 While the PCE deflator was reported under 3%, the GDP deflator is highlighted as a more comprehensive measure, coming in at 2.1% – right at the Fed's target rate.
• 💡 Moore suggests that the GDP deflator deserves more attention than the PCE deflator, which he implies is overemphasized by the Fed.

International Competitiveness and Taxation

• 🇺🇸 President Trump's stance against a global minimum tax proposed by Secretary Yellen is praised for protecting the U.S. tax base and competitiveness.
• 🤝 Negotiations to remove double taxation and prevent the OECD plan from being embedded in the U.S. tax code are crucial for future growth and international competition.

Supporting American Business

• 🚀 The importance of supporting American businesses, job creators, and innovators is emphasized, citing the 15% annual growth in information technology and intellectual property.
• ⚖️ Actions against successful companies like Google and Amazon are discouraged, with the sentiment that making a profit should not be considered a crime in America.