Presidential candidate Tim Pawlenty believes the US economy will grow 5% per year if his economic plan is adopted–a plan that will decrease government funding by $11.6 trillion, i.e., increase the government debt by that amount, from Bloomberg:
Pawlenty, 50, told “Fox News Sunday” he would “dramatically reduce spending” on federal programs to pay for tax cuts that may lower revenue by as much as $11.6 trillion over a decade. Achieving 5 percent growth each year is a “stretch goal,” the former Minnesota governor said yesterday
Pawlenty must be daft. There is no way in hell the US economy will ever grow at 5% per year on any sustainable basis unless something catastrophic destroys it nearly completely. Even coming out of the early-eighties recession, it only grew a bit over 7% on an annualized basis (according to TradingEconomics.com), but that only lasted for one quarter. The average annual GDP growth rate is right at 3% over the course of the last sixty years, mysteriously close to the natural growth rate (described as “e” in mathematics) used by biologists to predict organism growth.
No matter. Pawlenty will never be elected anyway, and probably won’t get the Republican nomination. My guess is that the nomination will go to Michelle Bachmann.