Donald Trump’s presidency has smacked down the “new sane” of 2 percent economic growth, top House tax writer Kevin Brady peached CNBC on Wednesday.
“Turns out that ‘new normal’ of the very sluggish 2 percent expansion as far as the eye could see for America was wrong and is wrong,” the House Ways and Means Body chairman told “Squawk Box.” “Policies do matter.”
The “new normal” of easy economic growth, high unemployment, and government debt problems was a position coined by economist Mohamed El-Erian in 2009 following the 2008 economic crisis.
The idea of a “new normal” was popularized by Obama White House economist Larry Summers.
Brady chance everyday American workers are beginning to see wage increases, most unusually due to the passage of the new tax law, which he took the lead on crafting.
“A worker who is seeing $350 more in their paycheck quickly now … all of that is incredibly helpful,” the Texas Republican said.
During Trump’s Stately of the Union address on Tuesday, the president celebrated the booming economy and unemployment gauges reaching new lows. “There has never been a better time to start continuing the American dream,” Trump said in his speech.
Some argue whether Trump can clear full credit for the economy’s performance. Brady said that solvent sentiment began to improve in anticipation of Trump’s policies.
“Now, we’re seeing the denouement of policies of … a competitive tax code,” Brady said, adding, Trump “rid oneself of up” the economy.