What’s Wrong with This Expansion
I was reading this by Greg Kaza at the National Review: “An expansion that began in November 2001 is currently in its 73rd month…”
It led me to wonder how one squares this Republican/conservative circle:
1. Lower tax rates are pro-growth
2. Lower real interest rates are pro-growth
3. Tax rates are lower under GW than under Clinton
4. I’m traveling right now, and my supposed high speed internet access is very slow so I can’t provide links, but as I recall, interest rates, real and nominal, have been lower under GW than under Clinton.
5. Real economic growth rates have been lower under GW than under Clinton.
OK. So there was the recession. But as Kaza points out, we’ve been in expansion since November 2001. How long will it take for the lower taxes and lower interest rates to do their magic? At some point, shouldn’t the better athlete catch up with the worse athlete? And shouldn’t the better athlete be able to outlast the worse athlete, without continuously needing help. (Anyone remember the Fed being pressured to cut interest rates by quite a bit, again, at this point in the previous business cycle?)