Straight Talk: We can choose growth

The 2016 campaign for president is well underway with several Republicans declaring their candidacy and Hillary Clinton announcing her intent to win the Democratic nomination. The election is a year and a half away, which gives them a lot of time to talk issues..My hope is they focus on economic growth. The reality of 2 percent annual GDP growth versus 3.5 percent growth is significant. Higher growth means more jobs, better incomes and less debt. The difference is largely driven by public policy. In a post-Obama America, political leadership will either keep us on the current 2 percent growth path or elevate us toward 3 percent and beyond..The Congressional Budget Office recently forecast annual growth of less than 2.5 percent for the country through 2024. Since World War II, the average annual growth rate is 3.3 percent (it averaged 4 percent between 1947 and 1969), but has dropped to an average annual rate of 1.5 percent since 2008..The U.S. Chamber Foundation illustrates the significance of weak economic growth like this: In 1947, the median family income (measured in 2012 dollars) was just under $30,000. Couples making $30,000 could experience 40 years of growth at the average postwar rate and earn $69,000 in 1987. If their children picked up at that point and experienced another 26 years of typical growth, their annual income could rise to $118,000. Suppose, instead, that the entire postwar period had been condemned to growth as poor as the post-2007 period. Our couple would have made only $40,000 in 1987 and their children's earnings would have topped out at $48,000..More broadly, 3 percent growth instead of 2.5 percent means 1.2 million more jobs in 10 years. For those who have jobs already, it means $4,200 in additional average income. CBO estimates that a full percentage point increase in growth over 10 years would eliminate $3 trillion in federal debt. The details behind these numbers are provided in a recently published report by economist Douglas Holtz-Eakin, president of the American Action Forum..The AAF leans right on the political spectrum, but the notion that economic growth is good for the country is a non-partisan fact. Bankers hold tremendous credibility on economic issues. When the candidates come to town, ask them to frame their issues in the context of economic growth. Will their ideas promote economic growth or hold it back? Entitlement programs, tax policy, regulation and other issues all have real-life implications. Economic growth is a policy choice, and I am hoping for a president willing to make that choice.