America is now on the road to prosperity: Varney

By Economic Indicators FOXBusiness

GOP tax reform will stimulate an already improving economy: Varney

FBN's Stuart Varney on the bullish outlook for the U.S. economy.

One year after the election, look at the economy: What do you see?  Much stronger economic growth, very low unemployment, rising wages. Sure looks like America is now on the road to prosperity.

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But we're only just getting started. The immediate future holds great promise of even better things to come. This is my opinion. It’s not based on economic modelling, it’s based on the economic trends as we report them daily.

The holiday shopping season is now in high gear, and all the evidence points to a very strong performance. People are spending. It doesn't matter whether they are spending in the mall or online: they are spending more than at any time in a decade and that’s a classic signal of growth.

After the holidays, in the new year, we'll get a boost from tax cuts. I'm assuming we will get a tax deal. If we don't, all bets are off. Starting Jan. 1 tens of millions of people will get a bigger paycheck. That’s what economists call "stimulus.” The economy is "stimulated" with extra, spendable money.

Businesses face a much lower tax bill. They keep more of their profit.  More stimulus.

Throw in some heavy duty spending on infrastructure, the plan will be unveiled next month, and we're looking at an economy that’s getting a lot more juice, and soon.

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A little history: From the day that Ronald Reagan's tax cuts took effect, to the day he left office, the economy grew at a better than 4% clip. His growth agenda restored prosperity.

In my opinion, we're seeing the same thing unfold right now, the economy is off and running, and here comes more stimulus.

Unless we're hit by an unexpected and uncontrollable  event, we're about to experience something unseen for a decade: 4% growth, expansion, dynamism, capitalist vigor. That’s prosperity.

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