U.S. Economy Makes a Comeback—4.1% Growth in Q2
WEEKLY ECONOMIC UPDATE
July 30 – August 3
CHART OF THE WEEK
The U.S. economy grew at an annualized rate of 4.1% in Q2—household spending was the largest contributor while business spending on capital continues to contribute strongly to economic growth. The chart shows that inflation-adjusted (real) GDP growth continued to accelerate in Q1 and Q2 over the last two years. In 2017 growth was bolstered by regulatory reform, which was then reinforced by TCJA in 2018. The improvement is also registered in real disposable income, which grew at an annual rate of 3.5% for the first half of 2018 compared with a 2.3% Obama recovery average.
Chairman’s Update
The Wall Street Journal quoted JEC Chairman Erik Paulsen following the House’s vote to repeal the ACA’s tax on medical devices: “This bill reverses a harmful tax that is hurting job growth and innovation across the country.”
Chairman Paulsen discussed the vote as well as developments in trade and tax reform on Bloomberg Politics. Click below to watch.
Chairman Paulsen talks trade, tax reform 2.0, and medical device tax repeal on Bloomberg Politics
JEC Releases
Chairman Paulsen Cheers Growth in GDP, Personal Disposable Income
Chairman Paulsen Discusses Economic Growth on Fox News Radio
A Sample of Democrats’ Plans to Raise Taxes
Fact Check: Yes, Data Show Workers’ Earnings Have Improved
Three Takeaways from CBO’s 2018 Long-Term Budget Outlook
Medical Device Tax by the Numbers
LAST WEEK
News & Commentary
U.S. Economy Grew at 4.1% Rate in 2nd Quarter (Wall Street Journal)
U.S. Core Capital Goods Orders and Shipments Surge in June (CNBC)
U.S., Europeans Agree to Iron Out Trade Differences (Wall Street Journal)
Venezuelan inflation predicted to hit 1 million percent this year (CNBC)
