Real GDP today might have been $35 trillion instead of $24 trillion had it not been for Ronald Reagan.
From 1Q1947 to 1Q1984, real GDP grew at a compound annual rate of 3.585% from $2.18268 trillion to $8.03484 trillion.
Since 1Q1984 through 2Q2026, updated yesterday, the compound annual growth rate fell to 2.651% so that real GDP today is $24.26961 trillion when at the previous rate it might have achieved $35.58524 trillion.
The 26% cut to the growth rate resulted in underperformance of nearly 32%, represented by $11.3 trillion in missing real GDP after 42.25 years.
Did recipients of massive ordinary income tax rate cuts know best what to do with their own money?
The answer in China is Shì de.
The calculation is 35585.24 = 8034.84 * (1 + 0.03585) ^42.25
