June 22, 2015
By Larry Kudlow
‘There is not a reason in the world why we cannot grow at a rate of 4 percent a year.” That’s what Jeb Bush said when he officially announced his presidential run in Miami last week. And right off the bat, most economists trashed the idea.
“It can’t happen and it’s never happened.” “Productivity is too low.” “The labor force is growing too slowly.” “Secular stagnation.”
They don’t call it the gloomy science for nothing.
But wait a minute. We have experienced relatively long periods of 4 percent or more economic growth. Following the Kennedy tax cuts, the economy averaged 5.2 percent yearly growth between 1963 and 1969. After the Reagan tax rates fully went into effect, alongside Paul Volcker’s conquering of inflation, the economy grew at 4.5 percent annually between 1982 and 1989. These were the “seven fat years,” so named by former Wall Street Journal editor Robert Bartley. And between 1994 and 1999, the Bill Clinton/Newt Gingrich economy increased 4.3 percent annually, after welfare reform, NAFTA trade, and cap-gains tax relief.
Read more at: Jeb Is Right about 4 Percent Growth