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Joint Economic Committee
Majority Website Chairman - Congressman Erik Paulsen (R-MN)

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Aug 13 2018

Democrats Want to Spend $42.5 Trillion More

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The policies Democrats want to implement would cost $42.5 trillion over the next decade according to Brian Riedl of the Manhattan Institute, who calculates that an 87% value-added tax (VAT) would be needed—on top of existing taxes—to pay for Democrats’ plans. Furthermore, such a new tax would still not solve our other fiscal challenges.

Aug 06 2018

July 2018 Jobs Review

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This employment report shows the U.S. economy is continuing to gain strength. Though job creation was dampened by the bankruptcy of Toys ‘R’ Us, BLS found that in May and June, 59,000 more jobs were created than was estimated earlier.

Aug 06 2018

Capital Investment is Accelerating

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Following near stagnation during the previous administration’s last two years, domestic capital expenditures (“capex”)—the lasting investments of private businesses—accelerated dramatically after the November 2016 election and even more so since Tax Cuts Jobs Act (TCJA) became law. TCJA is not solely encouraging stock buybacks as some have claimed. (Although stock buybacks indirectly lead to greater capex by freeing up investment dollars to be directed toward companies that will use the funds to expand.) American workers will benefit from having more capital to work with, making them more productive and leading to higher wages.

Aug 03 2018

August FOMC Review

Following Q2-2018 real GDP growth of 4.1% and inflation registering 1.9% (core PCE price index), the economy is in a “Goldilocks” state. At his previous post-FOMC meeting press conference, Fed chairman Jay Powell noted “the economy is doing very well” and that “business investment continues to grow strongly.” This development, arising from regulatory and tax reform, has enabled the Fed to gradually increase the IOER rate.

Jul 30 2018

U.S. Economy Makes a Comeback—4.1% Growth in Q2

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The U.S. economy grew at an annualized rate of 4.1% in Q2—household spending was the largest contributor while business spending on capital continues to contribute strongly to economic growth. The chart shows that inflation-adjusted (real) GDP growth continued to accelerate in Q1 and Q2 over the last two years. In 2017 growth was bolstered by regulatory reform, which was then reinforced by TCJA in 2018. The improvement is also registered in real disposable income, which grew at an annual rate of 3.5% for the first half of 2018 compared with a 2.3% Obama recovery average.

Jul 30 2018

Q2-2018 GDP Review

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RGDP growth averaged 2.9% over the last five quarters compared to the Obama Administration’s 2.2% recovery average despite its predictions that faster growth was no longer attainable. For the first half of 2018 real disposable income grew 3.5% compared with a 2.3% Obama recovery average. The improved economic outlook reaffirms that curtailing excessive regulation and pro-growth tax reform can jumpstart a stagnating economy, as the Reagan Administration demonstrated in the 1980s.

Jul 27 2018

From Pro-Growth to Anti-Growth

House Minority Leader Nancy Pelosi described as “accurate” reports that Democrats would increase taxes and roll back the Tax Cuts and Jobs Act (TCJA) if they controlled Congress. Below is some of what could be in store.

Jul 26 2018

Fact Check: Yes, Data Show Workers’ Earnings Have Improved

Americans are enjoying greater benefits and total compensation thanks to the Tax Cuts and Jobs Act and streamlined regulation, and the data show it. A recent misleading graph showed wage growth in negative territory, but such arguments making that case often appear to be either inaccurate or incomplete.

Jul 25 2018

Three Takeaways from CBO’s 2018 Long-Term Budget Outlook

Congressional Budget Office's (CBO) 2018 Long-Term Budget Outlook highlights that spending continues to drive America’s debt trajectory. Contrary to what some say, it also shows that the Tax Cuts and Jobs Act (TCJA) has little effect on the long-term budget outlook.