President Trump’s Office of Management and Budget (OMB) Director Mick Mulvaney has laid out the president’s economic agenda as “MAGAnomics.” It consists of mostly free market reforms, although it’s lacking in specifics.
In a Wall Street Journal op-ed, Mulvaney explained that the Trump administration believes that MAGAnomics will restore America to a 3% economic growth rate.
“Over the next 10 years, 3% growth instead of 2% will yield a nominal gross domestic product that is $16 trillion larger, federal government revenues $2.9 trillion greater, and wages and salaries of American workers $7 trillion higher,” Mulvaney wrote.
Mulvaney dismissed those who say that 3% economic growth is unattainable by arguing that similar criticisms were hurled toward Ronald Reagan, yet his economic policies resulted in a 4.4% real GDP growth rate once the recession evaporated.
“That is what a recovery looks like, and what the American economy is still capable of achieving,” wrote Mulvaney.
Mulvaney then provides a laundry list of broad economic policies: cutting taxes, rescinding regulations, reining in spending, reforming welfare so it incentivizes work, an “all of the above” energy policy, infrastructure spending and “fair trade.” Mulvaney gave a brief explanation as to how each policy would help boost the economy but the explanation didn’t provide any specifics on the details.
“MAGAnomics is for everyone, but especially for those who left for work this morning in the dark but came home after their kids were asleep,” wrote Mulvaney. “It’s for those who are working part-time but praying for a full-time job. It’s for folks whose savings are as exhausted as they are. This president hears you.”
Mulvaney’s full column can be read here.
With the exception of infrastructure spending and supposed “fair trade,” the policy items Mulvaney lists are consistent with the free market. It is possible to reach 3% economic growth, but that can only happen if the debt crisis is fully addressed and if Obamacare is repealed.