Prepare for Trump’s 5% Economic Growth, Says Larry Kudlow

GDP remains the most comprehensive indicator of our economy’s health. Gross Domestic Product encompasses consumption, investment, government spending, and trade, making it a vital measure.

Over the last 25 years, GDP growth has stagnated at around 2% on average. In contrast, the previous century saw an average growth rate of 3.5%. This earlier period represented genuine prosperity for all income levels—top, middle, and lower. It wasn’t just about wealth; it was about the opportunity for upward mobility and success.

Looking ahead, I believe that the economic strategies implemented during the Trump administration—such as supply-side tax cuts, deregulation, and a focus on energy independence—have the potential to achieve a remarkable 5% GDP growth. This isn’t a promise for every quarter or year, but with significant business investments, particularly in the burgeoning AI sector, and a decrease in oil prices, we could see a temporary dip in inflation. This combination might allow us to reach that ambitious 5% growth next year, or perhaps the year after.

The transformative vision that Mr. Trump has for a new capitalist approach to prosperity is currently underestimated by many, both supporters and critics alike.

Additionally, oil prices have also declined, dropping from nearly $80 at the start of the year to the mid-$50s today. This reduction in oil prices has a ripple effect, influencing hundreds of commodities and services across the economy.

If oil prices stabilize at their current levels, the over 30% decline could significantly lower consumer prices. We might even experience several months of zero or negative Consumer Price Index (CPI) readings, which would positively impact real GDP. The last time the economy achieved a 5% growth rate was in the second quarter of 2000—25 years ago. The last full year of real GDP growth at 5% or more was during Ronald Reagan’s presidency in 1984, when the economy grew by 5.6% for the entire year.

So, brace yourselves; while we haven’t seen such growth in over 40 years, I genuinely believe it could be on the horizon, either next year or the year after. We’re likely to witness the Dow reaching 50,000 soon, along with record highs in the S&P. After listening to Mr. Trump’s compelling speech Wednesday night, I can’t help but feel optimistic about the possibility of a 5% economy.

GDP remains the most comprehensive indicator of our economy’s health. Gross Domestic Product encompasses consumption, investment, government spending, and trade, making it a vital measure.

Over the last 25 years, GDP growth has stagnated at around 2% on average. In contrast, the previous century saw an average growth rate of 3.5%. This earlier period represented genuine prosperity for all income levels—top, middle, and lower. It wasn’t just about wealth; it was about the opportunity for upward mobility and success.

Looking ahead, I believe that the economic strategies implemented during the Trump administration—such as supply-side tax cuts, deregulation, and a focus on energy independence—have the potential to achieve a remarkable 5% GDP growth. This isn’t a promise for every quarter or year, but with significant business investments, particularly in the burgeoning AI sector, and a decrease in oil prices, we could see a temporary dip in inflation. This combination might allow us to reach that ambitious 5% growth next year, or perhaps the year after.

The transformative vision that Mr. Trump has for a new capitalist approach to prosperity is currently underestimated by many, both supporters and critics alike.

Additionally, oil prices have also declined, dropping from nearly $80 at the start of the year to the mid-$50s today. This reduction in oil prices has a ripple effect, influencing hundreds of commodities and services across the economy.

If oil prices stabilize at their current levels, the over 30% decline could significantly lower consumer prices. We might even experience several months of zero or negative Consumer Price Index (CPI) readings, which would positively impact real GDP. The last time the economy achieved a 5% growth rate was in the second quarter of 2000—25 years ago. The last full year of real GDP growth at 5% or more was during Ronald Reagan’s presidency in 1984, when the economy grew by 5.6% for the entire year.

So, brace yourselves; while we haven’t seen such growth in over 40 years, I genuinely believe it could be on the horizon, either next year or the year after. We’re likely to witness the Dow reaching 50,000 soon, along with record highs in the S&P. After listening to Mr. Trump’s compelling speech Wednesday night, I can’t help but feel optimistic about the possibility of a 5% economy.