Did Obama say 3% GDP growth was unattainable?

Would it matter?

He said a lot of stupid things that have come back to bite him.

His followers don't care.

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I love Google's revisionist history search results

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This is the future. Memory holing anything that contradicts the narrative.

"You remember Obama saying jobs aren't coming back? See if you can find a clip to support your claim." - Google.

no, and we saw just over 2.9% just a few years ago. and a couple of 4-quarter periods where we had 3 or better under his administration

his magic wand comment was about obsolete jobs and was exactly correct

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Closest I can find to that it's Larry Summers, White House economic advisor stating 2% and stagnation may be the new norm

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Fed Board estimates 1.8% as the long-run (potential) GDP growth rate

ETA LINK

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Banks need to adapt to an economy in which 2% annual GDP growth is the new standard, said John E. Silvia, managing director and chief economist at Wells Fargo Securities. Silvia’s comments were part of a wide-ranging scan of the economy presented Oct. 29 at the RMA Annual Conference.

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LINK

Forbes:

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The New Normal - US Economic Growth Stuck At 1.5, 1.75 % Of GDP

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LINK

BLS:

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Moving forward, there are reasons to believe that growth will continue to be slower than was originally hoped. Annual U.S. GDP growth exceeding 3.0 percent, as experienced in the mid- to late 1990s and mid-2000s, is not expected to be attainable over the coming decade.

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LINK

James Bullard, president of the Federal Reserve Bank of St. Louis:

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If 2 percent growth is, as he says, “the most likely scenario” for the foreseeable future, the nation faces a second consecutive lost decade — one without a year of 3 percent growth.

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Team Obama: Sorry, America, the ‘new normal’ may be here to stay

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The good times may be over for good. In a speech to the Economic Club of New York yesterday, US Treasury Secretary Jack Lew said the US GDP growth rate, adjusted for inflation, is now projected to run a little above 2% a year.

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President Trump said, frick that noise:

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Donald Trump's presidency has smacked down the "new normal" of 2 percent economic growth, top House tax writer Kevin Brady told CNBC on Wednesday.

"Turns out that 'new normal' of the very sluggish 2 percent growth as far as the eye could see for America was wrong and is wrong," the House Ways and Means Committee chairman told "Squawk Box." "Policies do matter."

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LINK

Do you understand why the former Obama administration said things like, "Sorry, America, the ‘new normal’ may be here to stay"?

Because fundamentally transforming America means sliding the scale of government to more socialism (which is an economic form of government first) and away from free enterprise/capitalism.

Socialism or socialists like policies are a bane on economic production. Obamacare is a federal government policy that was intended to take over the means of healthcare in the USA. Given the fact that healthcare takes up approximately 16-18% of the economy that is a huge chunk of the economy being controlled by the federal government.

Trump is sliding the scale back to more free enterprise and capitalism.

On a side not, President Trump is like an old style New York Democrat. He doesn't give a crap about social issues, is very pro-business but still a big spender despite railing against it. JFK was the same way.

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But let’s not delude ourselves into thinking that 4% growth will be the new normal either.

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I don't believe 4% is sustainable. 3%? Sure.

But what does it take to maintain 3%?

1. Pro-business policies.
2. Relatively low tax rate...such that people are not looking to escape US tax burdens...that is, being competitive with the rest of the world.
3. Gen Z and millennials replacing baby boomer retirees (because my gen-x generation is not going to do it...there is not enough of us).
4. Maintain scarcity on unskilled labor through immigration policy and import as much skilled labor as possible.

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trillion-dollar deficits at the top of the business cycle, apparently

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I am concerned about this. But until the rest of the world stops buying out debt it's going to be tough for the profligate congress to get the message to slow down the spending.

Fair enough, that’s my bad projecting other people’s assertion of persistent 4% onto you. Sorry about that, easy to conflate positions of different posters.

But I also think 3% is going to be real tough. I largely agree with list of things that need to happen, but it’s tough to see that being enough. We’re far enough along the production function that that kind of growth probably only occurs if we can expand on our already high capacity for innovation. So I’m hoping the pro-business policies we see are further focused around incentivizing IP development.

And we’re going to have to get the gov budget deficit under control if we don’t want to undermine institutional stability.

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We’re far enough along the production function that that kind of growth probably only occurs if we can expand on our already high capacity for innovation.

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The US has to remain the place were innovation is encouraged. To me that means keeping federal government polices toward the free enterprise end.

In terms of specifics in what will drive our economy to good GDP numbers I have a few ideas:

1. Fracking technology has improved drilling technology such that you only need one well where before we needed 10. That is keeping energy prices relatively low. Innovation needs to continue in the energy sector to keep it cheap and available.
2. Automation.
3. Financial technology. The next revolution in banking and financial technology will be to add liquidity to the business to business market. There is and estimated $8 Trillion shadow market where accounts receivables are tied up for ~49 days between businesses. That puts a heavy burden on small business doing business with big business (or government). If that 49 days can be brought to less than 3 days that means one or two more projects a year per small business.