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Trump's Speech on Jobs and Economic Growth

In another dynamic speech on jobs and the economy Donald Trump expanded on his plans for tax cuts to stimulate the US economy and create jobs, calculating that his plans, including wide-ranging deregulation, would raise the growth rate of the US economy from 2 per cent to 3.5 per cent, and create 25m additional jobs. 

“If we lower our taxes, remove destructive regulations … unleash the vast treasure of American energy, and negotiate trade deals that put America first, then there is no limit to the number of jobs we can create,” said Donald Trump economics speechTrump. 

His plans include cuts in the federal corporate tax rate from 35 per cent to 15 per cent, and in the top federal income tax rate from 39.6 per cent to 33 per cent. 

Combined with planned cuts in the 13 percent of US government spending that does not go to entitlements such as social security or defense, the tax cuts would not increase the deficit. 

Mr. Trump also said the US should “establish a national goal of reaching 4 per cent economic growth”. He added: “And my great economists don’t want me to say this, but I think we can do better than that.” 

Mr. Trump spoke loosely and plainly enjoyed himself, and, according to The New York Times, repeatedly teased the well-tailored crowd about their own wealth and business ventures. He put his audience on notice that he would enlist some of them in government, to help renegotiate deals far larger than any they had dealt with before. 

“Hate to say it,” Mr. Trump joked, “but your companies are peanuts.” 

Trump also continued to cast himself as a champion of working-class interests, and in his remarks invoked nostalgia for the heyday of the American auto industry, steel manufacturing and coal mining. And Mr. Trump attacked his Democratic rival, Hillary Clinton, for having described some of his supporters as “deplorables” for holding views she called bigoted. 

“My economic plan rejects the cynicism that says our labor force will keep declining, that our jobs will keep leaving and that our economy can never grow as it did once before,” Mr. Trump said. “And boy, oh boy, did it used to grow.” 

As The New York Times report on the speech observed, “While not articulated in these terms, Trump’s plan imagines that the much-remarked-upon slump in productivity will reverse itself if his agenda of lighter regulation and lower taxes was put into effect.” 

The plan, put together under the guidance of conservative supply-side economists Stephen Moore and Larry Kudlow, even garnered grudging praise from some economists associated with Trump’s Republican primary opponents. 

Glenn Hubbard, dean of Columbia Business School and an adviser to Jeb Bush’s failed campaign for the Republican nomination, said Mr. Trump was “directionally” right in stressing the need for stronger economic growth, and in arguing for tax cuts and deregulation. 

“He is asking the question that people want answers to: why can’t we have higher growth?” Mr. Hubbard said according to The New York Times. 

“I don’t think there is anything in Secretary [Hillary] Clinton’s platform that is pro-growth at all,” observed Hubbard.

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