Trump’s Supply-Side Policies Spark High Growth and Low Inflation |
With the federal government now reopened after a six-week shutdown, we’re witnessing some remarkably positive economic developments. The annual inflation rate has dropped to 2.7 percent, while the growth rate has surged to 4.3 percent. It’s becoming clear that President Trump’s economic policies are starting to bear fruit.
When Trump took office, inflation stood at 2.9 percent. While it dipped to 2.4 percent last spring, it ticked up to 3 percent by September. However, the recently reported November inflation rate of 2.7 percent underscores a promising downward trend.
Initially, GDP contracted at an annual rate of 0.5 percent in the first quarter of 2025. Yet, in the second quarter, the first full quarter of Trump’s presidency, the growth rate rebounded to 3.8 percent. The latest announcement reveals that the growth rate for the third quarter has soared to an impressive 4.3 percent.
The rationale is straightforward: Trump’s economic agenda, grounded in supply-side economics, is designed to spur faster growth while curbing inflation which is a strategy with a proven track record of effectiveness.
So, what precisely is supply-side economics?
In the early 1960s, economists convinced government officials that demand-side economic policies could solve the problems of high inflation and slow growth with high unemployment.
They reasoned that if the........