Freedom Line Blog

After years of Obama economic malaise, American Enterprise Institute (AEI) highlights how worker productivity is finally surging following the election of Donald Trump and implementation of his deregulatory and tax-cutting agenda:

Worker Productivity Finally Surging

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Here’s why that’s important, as AEI’s James Pethokoukis notes:

[P]roductivity increased at a rapid 3.6% annualized rate during the first three months of this year.  On a year-ago basis, this puts productivity growth at 2.4%, the fastest pace since early 2010 and far better than the 1% pace that has typified the post-financial crisis expansion.  As Barclays economist Blerina Uruci told The Wall Street Journal, ‘That means we can grow at a faster pace on a more sustained basis.  It also means the economy can run hotter for longer without causing inflationary pressure.’  Moreover, consistent 2%-plus productivity growth makes a 3% real GDP economy less of a stretch.”