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with several governors and mayors at The White House. Congress showed little enthusiasm for the plan, with The Hill reporting, “President Trump’s infrastructure the kansas city chiefs camouflage veteran full over printed shirt plan appears to have crashed and burned in Congress.” The Bureau of Labor Statistics estimates the contribution to GDP of its different components. Federal government spending did not contribute meaningfully to real GDP growth on average from 2014–2016, indicating neutral fiscal policy (i.e., no stimulus). However, from it contributed about 0.2% (0.2 percentage points) to the growth rate on average each year, reflecting President Trump’s stimulative deficit increases from the Tax Act and additional spending. Average hourly earnings increased from 2015–2016 to 2017–2018 in nominal terms,
but since inflation was higher in the latter period, real earnings growth was lower. For example, average hourly earnings growth rates for production and non-supervisory workers (a proxy for middle-class workers) increased in nominal terms from 2.3% for the period, to 2.6% for the period. However, in real (inflation-adjusted) terms, the growth rate was faster at 1.6% in versus the 0.3% in 2017–2018, as inflation was higher in the latter period. For all employees, which includes higher wage managers, the pattern is similar, with faster nominal growth in 2017–2018 at 2.7% versus 2015–2016 at 2.4%, but slower real growth in 2017–2018 at 0.4% vs. 1.7% in 2015–2016. To help address lost income for millions of workers and assist businesses, Congress and President Trump enacted the Coronavirus Aid, Relief, and Economic Security Act on March 27, 2020. It included loans and grants for businesses, along with direct payments to individuals and additional funding for unemployment insurance.
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