Contrary to the opinion of most economists, the Trump government expects the US economy to continue to prosper over the next decade through further tax cuts. reduced regulation and improvements in national infrastructure.
The annual report of the Council of Economic Advisers President Donald Trump expects vigorous economic growth of 3.2% this year and 2.8% still healthy in 10 years. This is much faster than the Federal Reserve's long-term forecast of annual economic growth of 1.9%.
The government's forecasts are based on the hope that it will manage to implement further tax cuts, incentives to improve infrastructure, new labor policies and reduced regulations – programs that are unlikely to win favor with the Democratic House, which is expected to approve most projects. d & # 39; them.
Kevin Hassett, chairman of the White House Council, insisted that the president's economic agenda would provide enough fuel to generate robust growth, while the majority of economists predict a slowdown due in part to aging of the American population.
He added that the main risk for growth would be that the financial markets anticipate the reversal of existing Trump policies. Without going into details, Hassett said the risk would be that the markets would expect the winner of the 2020 presidential election to move away from policies such as the redesign of the government. tax imposed by Trump in 2017.
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Trump delivers speeches over the years
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US President Donald Trump makes a speech at the World Economic Forum (WEF) Annual Meeting in Davos, Switzerland, January 26, 2018. REUTERS / Denis Balibouse
On December 13, 2017, US President Donald Trump delivers a speech on tax reform legislation at the White House in Washington, DC. REUTERS / Carlos Barria
US President Donald Trump is speaking at the State Capitol of Utah, where he has announced major cuts to the nation's huge wilderness monuments in Utah, in Salt Lake City, Utah, December 4, 2017. REUTERS / Kevin Lamarque
US President Donald Trump delivers his speech to Chinese President Xi Jinping to meet with business leaders at the Great Hall of the People in Beijing, China, on November 9, 2017. REUTERS / Damir Sagolj
The President of the United States, Donald Trump, delivers a speech at the National Assembly in Seoul, South Korea, on Wednesday, November 8, 2017. REUTERS / Lee Jin-man / Pool
On September 27, 2017, US President Donald Trump delivers a speech on tax reform in Indianapolis, Indiana, USA. REUTERS / Jonathan Ernst
President Donald Trump turned his back on the crowd during his speech at a rally of Senator Luther Strange at the Von Braun Center in Huntsville, Alabama, United States, on September 22, 2017. REUTERS / Marvin Gentry
WE. President Donald Trump delivers a public address on Krasinsky Square in Warsaw, Poland on July 6, 2017. REUTERS / Kacper Pempel
US President Donald Trump delivers a speech on US-Cuban relations at Manuel Artime Theater in Miami, Florida, June 16, 2017. REUTERS / Carlos Barria
US President Donald Trump arrives to deliver a speech on US-Cuban relations at Manuel Artime Theater in Miami, Florida, June 16, 2017. REUTERS / Carlos Barria
US President Donald Trump delivers a speech at the Arab-Islamic-American summit in Riyadh, Saudi Arabia on May 21, 2017. REUTERS / Jonathan Ernst
US President-elect Donald Trump will speak at the US Thanksgiving Tour in Orlando, Florida on December 16, 2016. REUTERS / Lucas Jackson
US President-elect Donald Trump speaks at the US Thanksgiving Tour at the Wisconsin State Fair Exposition Center in West Allis, Wisconsin, on December 13, 2016. REUTERS / Shannon Stapleton
President-elect of the United States, Donald Trump, speaks at a demonstration at the Carrier HVAC plant in Indianapolis, Indiana, United States, on December 1, 2016. REUTERS / Chris Bergin
US President-elect Donald Trump speaks at his rally in Manhattan, New York, United States, November 9, 2016. REUTERS / Carlo Allegri
US President-elect Donald Trump speaks at the rally held on election night in Manhattan, New York, United States, November 9, 2016. REUTERS / Jonathan Ernst
US President-elect Donald Trump speaks at the rally held on election night in Manhattan, New York, United States, November 9, 2016. REUTERS / Jonathan Ernst
US Republican presidential candidate Donald Trump will speak during his last campaign in front of Devos Place in Grand Rapids, Michigan, United States on November 8, 2016. REUTERS / Rebecca Cook
US Republican presidential candidate Donald Trump gestures at a protest in Raleigh, North Carolina on November 7, 2016. REUTERS / Chris Keane
Republican presidential candidate Donald Trump speaks at a campaign rally in Raleigh, North Carolina, United States on November 7, 2016. REUTERS / Chris Keane
Republican presidential candidate Donald Trump will speak at a campaign rally in Sarasota, Florida, United States on November 7, 2016. REUTERS / Carlo Allegri
Republican presidential candidate Donald Trump attends a campaign rally in Detroit, Michigan, United States, on November 6, 2016. REUTERS / Carlo Allegri
Republican presidential candidate Donald Trump rallies his supporters in a freight hangar at the Minneapolis-Saint Paul International Airport in Minneapolis, Minnesota on November 6, 2016. REUTERS / Jonathan Ernst
Republican presidential candidate Donald Trump attends a campaign rally at the Florida State Fairgrounds in Tampa, Florida, United States, November 5, 2016. REUTERS / Carlo Allegri
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Tax cuts added about $ 1.5 trillion to the federal debt
"Uncertainty about the policies themselves could slow down their positive impact," Hassett said.
Tax cuts have added about $ 1.5 trillion to the federal debt over the next decade, regardless of economic growth. The report suggests that lower tax rates have increased business investment so as to make the economy more productive while creating an increase in the number of people leaving the sidelines to look for work.
The optimism of the administration comes against a backdrop of slowing global economic growth, the recent slowdown in manufacturing output and weak retail sales in January and December.
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