From the Despondency & Lack of Spirit so evident under Biden, to a New Optimism created by Trump
By Newt Gingrich
There's a lot of anxiety and confusion about the implementation of President Donald J. Trump’s tariff policies, and – as should be exdpected in today's liberal media environment – there's been the endlessly negative articles in the opposition media by the anti-Trump establishment, as well as over-reactions in the stock market based on perhaps understandable, but generally random noise.
But Treasury Secretary Scott Bessent’s excellent May 4th Wall Street Journal column helped crystallize my thinking about the economy.
By the summer of 2026, we should be in the early stages of what will come to be known as the Trump Boom.
Warren Buffett has always emphasized investing for the long run and not trying to outguess the market day-to-day.
In that tradition, let’s take Secretary Bessent’s description of “Trump’s Three Steps to Economic Growth” and project them out to the summer of 2026. Thinking beyond the immediate is vital when trying to understand national patterns.
I have lived through moments of projection like this three times.
In the 1980s, President Ronald Reagan’s tax cut and deregulation plan took two years to reach its full potential.
- When it did, growth skyrocketed.
In the 1990s, we cut taxes, reformed welfare and Medicare, and a host of other programs. We balanced the Federal Budget for four straight years for the only time in a century, and we helped launch an internet boom.
- Then, there was a remarkable period of economic growth.
And in 2017 – prior to the set back caused by the global COVID-19 Pandemic – President Trump combined tax cuts, deregulation, and a liberation of the U.S. Energy Industry.
- It led to a boom which created jobs, raised the income of working Americans faster than the income of the wealthy, and created monetary stability with low inflation.
So, we have seen a dynamic picture of the economy working when government policies favor work, entrepreneurship, investing, and risk taking. It takes a little while, but once it starts rolling, it can create amazing momentum.
Likewise, President Trump’s current economic program is a case studying in:
- Maximizing incentives for Economic Growth
- Job Creation
- Lower Inflation
- Energy Production
- Lower Interest rates, and
- Affordability for working Americans and their families
Consider the components that will come together to create a boom.
The Republican Budget Bill – President Trump’s “One, Big, Beautiful Bill” – will:
- Cut taxes & spending
- Encourage energy production, and
Shift welfare programs back from dependency, to the working independence similar to what we achieved with the 1996 Welfare Reform Bill.
Making work more desirable will improve lives, increase productivity, and lead people to better, more sustainable futures.
The tax cuts will help people keep more of their earnings. This will alleviate the affordability crisis created by Joe Biden’s Administration, and give businesses huge incentives to build new factories – and create new, better paying jobs.
Spending cuts in the budget bill – and restraints on spending imposed by the Office of Management & Budget – will reduce the size of the deficit and bring about lower interest rates. This will revive the housing industry, and make life dramatically easier for small businesses.
Dramatic deregulation in the Republican Budget Bill – and throughout the Federal Bureaucracy – will liberate economic activity.
Buildings will – including many new factories – be built more quickly. Bridges, highways, and railroads will be modernized more rapidly – and with less cost.
Entrepreneurs with new ideas will gain access to more resources – and face fewer obstacles to turning their dreams into reality.
- The Investment Boom may be the largest in American history.
- The White House's running website list of trillions of dollars already committed to make America more prosperous, will continue to grow.
- The desire to Invest & Manufacture in the United States will be intensified by the new tariff strategy.
When combined with tax cuts and deregulation, it will make America the best place in the world to create jobs.
The revolution in artificial intelligence and robotics will lead to extraordinary increases in productivity – and dramatic declines in cost. It will lead to a new world of capabilities in Civilian Life and National Security.
Opportunities in space will grow with stunning rapidity. This will create jobs on Earth and in low earth orbit – and eventually on the Moon and Mars. It will be:
- a rapidly evolving sector,
- which will increase our National Security,
- revolutionize our communications systems,
- and create jobs in New Manufacturing & Tourism Industries.
We will achieve things that would have been considered science fiction a decade ago.
The mood of the country will quickly turn from the despondency and lack of spirit so evident under President Biden, to a new optimism.
Hard working Americans will be enabled to create better futures for themselves, their families – and all of us.
The Trump Boom will be historic – but we must work to make it happen.
Newt Gingrich served as the 50th Speaker of the U.S. House of Representatives from 1995 to 1999. Known for creating the “Contract with America” that led the Republican Party to victory in 1994, he helped create the first conservative majority in the House in 40 years. For more of his commentary and insights, visit Gingrich360.com or subscribe to the Newt’s World podcast.
