Friday, October 28, 2016

The Hill: Trump's Growth Projections Leave Economists in Disbelief

By Peter Schroeder:

Trump’s bold claims are eliciting scoffs from economists, who argue that such numbers are difficult if not outright impossible to meet.

“His growth expectations are not realistic. The economy's potential growth is 2 percent, and to get stronger growth will require immigration reform that provides a path to legalization for the undocumented and a significant increase in skilled legal immigration. He is strongly opposed to this,” said Mark Zandi, chief economist at Moody’s Analytics.

“Even then, [immigration reform] will increase potential growth to closer to 2.5 percent. We may be surprised and get stronger growth, but it wouldn't be prudent to count on it.”

Conservative economists are equally skeptical.

Stan Veuger, resident scholar at the right-leaning American Enterprise Institute, said Trump is setting a “ridiculous expectation” for growth.

“He doesn’t really know what he’s talking about, and his policy platform is so incoherent that he has to make claims like that,” Veuger said.

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