Dec 7, 2017

How the economy compares to when other fiscal bills were passed

A major Republican motive for passing their tax bill is to create economic growth. But the economy is doing relatively well right now compared to when other major fiscal legislation was passed over the past two decades, according to an analysis done by the Committee for a Responsible Federal Budget for Axios.

Data: Committee for a Responsible Federal Budget analysis of BEA and BLS data via Federal Reserve Bank of St. Louis; Chart: Andrew Witherspoon / Axios

Why this matters: Since the economy is already in good shape, the cuts could super-charge it, or have relatively little effect while adding hundreds of billions of dollars to the federal deficit.

Sound smart: These economic trends reflect an awkward political tension that's been playing out for months: President Trump has (correctly) been tweeting about good economic growth during his first year in office, while congressional Republicans have been insisting the economy needs tax reform.

Go deeper