About Me

In writing the "About Me" portion of this blog I thought about the purpose of the blog - namely, preventing the growth of Socialism & stopping the Death Of Democracy in the American Republic & returning her to the "liberty to abundance" stage of our history. One word descriptions of people's philosophies or purposes are quite often inadequate. I feel that I am "liberal" meaning that I am broad minded, independent, generous, hospitable, & magnanimous. Under these terms "liberal" is a perfectly good word that has been corrupted over the years to mean the person is a left-winger or as Mark Levin more accurately wrote in his book "Liberty & Tyranny" a "statist" - someone looking for government or state control of society. I am certainly not that & have dedicated the blog to fighting this. I believe that I find what I am when I consider whether or not I am a "conservative" & specifically when I ask what is it that I am trying to conserve? It is the libertarian principles that America was founded upon & originally followed. That is the Return To Excellence that this blog is named for & is all about.

Sunday, January 6, 2019

The Importance Of Continued Economic Growth In America - First In A Series Of Three

click on graphic to enlarge
Economic growth is the bedrock foundation of the U.S. standard of living & our prosperity.  A fast growing economy employs more people who make more money than they would in a slow growing economy. 
Employment growth is one of two factors that drives economic growth because a larger work force & commensurate labor force participation rate means more workers producing more things & more consumers buying things. 
The second factor is productivity increases which averaged 2% growth in 2018 – compared to 0.7% growth from 2011 to 2017 meaning you have the potential for good times ahead, not just in 2019 but for years to come.
In essence economic growth boils down to how many people are working & how productive they are.
It wasn't that long ago that 4% real annual economic growth was the American standard of prosperity.  The above graphic shows that three of the last four presidents did not achieve 4% real annual economic growth in the best calendar years of their presidencies.  BO did not achieve 3% real annual economic growth in his best calendar year, let alone all the other calendar years of his presidency, according to the Bureau of Economic Analysis (BEA) as shown on the above graphic.
So 3% real annual economic growth has become the new reduced elusive economic standard – it was last realized in back to back calendar years in 2004 & 2005 with 4% real annual economic growth last realized in the four consecutive calendar years 1997 to 2000, after which our prosperity started to diminish.  See graphic below.
click on graphic to enlarge
The economic figures showing the real percentage change from the preceding quarter for President Trump's first six full quarters in office have resembled many of both GW Bush's & BO's quarterly levels for the good & mediocre quarters without so far falling to the levels of the subpar quarters of both the Bush & BO presidencies when real quarterly economic growth rates of way below 2% were recorded with some negative growth quarters sprinkled in.  It was the subpar & negative quarters that significantly brought down the calendar year growth levels for both Bush & BO.
Bush had three annual periods (any four consecutive quarters) of over 4% real economic growth & nine annual periods of over 3% real economic growth when measured as a percent change from any quarter one year ago (i.e., not necessarily a calendar year but rather any four consecutive quarters – not counting overlap of the first quarter of the first year of a presidency there are 31 such annual periods for a two term president).  BO had no such annual periods of 4% real economic growth & four annual periods of 3% or greater real economic growth over the 31 such periods of his two term presidency.  Source – BEA Table 1.1.11.  Real Gross Domestic Product: Percent Change From Quarter One Year Ago – December 21, 2018.
Real annual economic growth averaged 1.4% for all of BO's presidency & 2.1% from June 2009 when the recession ended to the end of BO's presidency – by far the weakest expansion of the post WWII period.
But more importantly to see the dramatic & immediate change that Trump made to the American economy & our prosperity please consider that the real average annual economic growth rate during BO's final six full quarters in office was 1.5% compared to Trump's first six full quarters in office that produced a 3.0% real annual economic growth rate – both rates calculated from BEA Table 1.1.6 entitled Real Gross Domestic Product, Chained Dollars – December 21, 2018.
This immediate doubling from lackluster growth under BO to reasonable growth under Trump should dispel BO's claim that he is the one who started the prosperity realized since Trump took office.
If we can achieve a continuous 3% real annual economic growth rate the economy will double in 24 years as opposed to over 48 years to double @ a 1.5% continuous real annual economic growth rate.  Starting with a $20 trillion (rounded) economy, a 1.5% continuous real annual economic growth rate would result in $12.07 trillion (in 2018 dollars) less goods & services being available for consumption than would be available with a 3% continuous real annual economic growth rate over 24 years.  It would take more than an additional twenty four years to make up this $12.07 trillion difference @ 1.5% real annual economic growth.  This example depicts a lost twenty four years regarding job creation, increased compensation, & general prosperity for the American people – exactly per BO's purposeful design to make people dependent on government.
Now economic growth does not operate in a vacuum & the next post, second in this three part series, will present the potential headwinds that could hold back our expansion. 
A very dear friend & regular blog commenter recently wrote "there is such hostility & hatred of Trump, it seems what happens to the U.S. is unimportant to Democrats & many Americans."
Please take this thought into account if you find yourself not hoping the American economy continues to expand under President Trump's policies.
As for me, I'm rooting for a return to 4%.


  1. Listening to a program, it will take 5 years to recondition a generation of non-hate. First the removal of

    Progressive educators.

  2. I say AMEN! to your rooting! I’m also happy you dispelled Obama’s claim to being the source of this surge for economic growth. However, most people accept what they hear or believe the “fake” news!