“One way to reduce the financial burdens of child care for both single and married females considering working is to reduce the direct costs of care,” the report says, adding, “Regulations that impose minimum standards on providers can decrease the availability and increase the cost of obtaining care, thus serving as a disincentive to work.”
Although the White House forecasts consider those deregulatory efforts and infrastructure spending to be nearly as important to growth as tax cuts, Mr. Trump has made relatively little effort to push states and Congress to enact them.
The reliance on new policies to power additional growth helps explain some of the difference in optimism for future growth between White House forecasters and their counterparts in the Federal Reserve, the Congressional Budget Office and the private sector, who all project significantly slower growth over the next 10 years than Mr. Trump does.
It does not explain why the White House has so much more faith in 3 percent growth this year than other forecasters, who have whittled down their expectations for 2019 in light of increased global obstacles to growth and weaker-than-expected readings of the domestic economy so far this year.
On Wednesday, the Fed will release its new economic projections, which many analysts expect will show a slight softening in growth as a result of a prolonged trade war and an economic slowdown overseas.
The forecast that the Council of Economic Advisers released on Tuesday predicts 3.2 percent growth for 2019 — nearly a full point higher than the growth expected by the Fed.
The chairman of the Council of Economic Advisers, Kevin Hassett, said the administration’s faith in long-term economic growth came from their forecasters’ ability to correctly peg growth in 2017 and 2018.
Source Article from https://www.nytimes.com/2019/03/19/us/politics/trump-tax-cut-economic-forecast.html
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