Guest post by Joe Hoft
For the second year in a row President Trump broke the record for the largest annual increase in GDP in history! In 2017 the US GDP increased by a record $853 billion. But this record was shattered in 2018 with an increase of greater than $1 trillion, the largest annual increase in GDP by any country in world history!
The World Bank reported for 2017 that the US was about 25% of the total world GDP of around $80 trillion. The World Bank reported the US at $19 trillion to China’s $12, Japan’s $5, Germany’s $4 and the UK’s $3.
For the year 2018, according to the US BEA, the US GDP landed at $20.9 trillion for the first time in history being above $20 trillion for the year.
The increase over last year’s record high is the largest in history. The US GDP increased by more than $1 trillion for the first time in history!
Along with this, President Trump has managed to keep the debt to GDP ratio from increasing since he became President. For 2018, the ratio is at the same amount as when he took over. (By comparison former President Obama increased the debt to GDP ratio by more than 25% in his first two years!)
The debt to GDP ratio would be less than when President Trump took over if the Fed left the interest rates alone and did not increase them after President Trump won the 2016 election. For seven of Obama’s eight years in office the Fed kept interest rates at 0%. Once Trump was elected the Fed increased rates eight times for a total of 2%. This alone accounts for nearly $1 trillion in US debt that the Fed has added by increasing interest rates.
The Fed appears to be working against the US’s interests and still the US economy under President Trump is setting miraculous records.