So much for "Maganomics"
While OMB Director Mick Mulvaney was touting “MAGAnomics” today, a look at news reports shows that the CBO analysis of Trump’s budget threw cold water on his claims that Trump’s policies will grow the economy:
“The Congressional Budget Office said Thursday that President Trump’s first budget plan would not eliminate the deficit over 10 years or expand the economy at all by 2021, casting doubt on the administration's controversial economic assumptions that were supposed to bolster key arguments for the White House’s agenda over the next year.”
“The White House also estimated that its budget changes would lead the economy to grow by 3 percent per year. The CBO found, however, that economic growth would average only 1.9 percent per year under the White House's plan.”
NY Times: Congressional Budget Office Casts Doubt on Trump Spending Plan
“President Trump had promised that his mix of tax cuts, deregulation and reductions in wasteful spending would spur economic growth and cure America’s ailing fiscal health. On Thursday, an independent government analysis of those proposals effectively said, ‘Not so much.’”
“The assessment comes after the Trump administration was criticized in May for releasing a budget that economists said relied on overly rosy growth estimates. It was also panned for using questionable math and offering minimal detail about the president’s tax plan, a central component in Mr. Trump’s plans for improving the economy.”
AP: CBO: Trump’s budget doesn’t balance federal ledger
“CBO says that Trump relied on far too optimistic predictions of economic growth and that Trump’s rosy projections are the chief reason his budget doesn’t balance as promised.”
“Trump’s budget predicts that the U.S. economy will soon ramp up to annual growth in gross domestic product of 3 percent; CBO’s long-term projections predict annual GDP growth averaging 1.9 percent.”