JB, the “populist”

In his “I´m a candidate” speech, JB said:

“There is not a reason in the world why we cannot grow at a rate of 4 percent a year,” Bush said as he formally announced his presidential bid in Miami. “And that will be my goal as president — 4 percent growth, and the 19 million new jobs that come with it.”

To do that, he would first have to “recruit” the Fed. Unfortunately, if the Fed acquiesced bad things would happen.

But we see from the chart below that the Fed could help any President if it decided to undo the monetary f-up it perpetrated earlier. But almost everyone has bought the “house bubble-burst – financial crisis – demographic – great stagnation story! Plus, the Fed is “unaware” that it messed-up and is on the verge of doing an encore!
Monetary F-up


2 thoughts on “JB, the “populist”

  1. I think Jeb Bush is right to suggest a 4% RGDP target, at least for several years.
    The US economy grew more rapidly than that from 1976-1979.
    Sadly, I doubt Bush understands the role of the Fed and the need for FICA tax cuts to obtain such a growth path.

  2. There is one very good reason we can’t grow at 4% per year… and with Kevin Warsh as a top member of his economic team, JB is going the wrong way!

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