Review of the 2.6% Economic Growth Report in New York Times

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Review of the 2.6% Economic Growth Report in New York Times
The article “U.S. Economy Grew at 2.6% Rate in the Fourth Quarter” was published on January 26th, 2018, by Patricia Cohen on New York Times. The article reviews the trend that has been experienced in the last four years and anticipates possible impacts of a change in the tax policies with a new regime. The author, government analysts, and the president are optimistic about a positive performance in the year 2018. The high anticipation for an impressive economic performance is informed by the declining levels of unemployment, an increasing consumption trend, and surging business investments.
Tax cuts have been identified as the leading cause of the improved economic performance. The new GOP tax bill changes the tax code, which will have a significant impact the American households and the economy at large. The tax code has significantly reduced the payee charged on workers. Depletion of inventories has therefore been caused by an increase in the net earnings by workers. Similarly, the forecast of the growth in consumer demand is also informed by the increased net earnings (Cohen).
The reported 2.6% economic growth has not been consistent. Changing consumer trends have impacted booms and slacks in the economic growth. The first quarter, soon after the president assumed office experienced low consumer trend, which restricted the economic growth to 1.2 percent. In the next six months, it increased to 3.1% and 3.3% respectively (Cohen). Though the fourth quarter analyses were not complete on some industries’ performance, the festive season spending was high and thus, expected to perform impressively. However, the consu...