The biggest risk to the U.S. economy is lopsided growth said American Enterprise Institute President Arthur Brooks.
“All growth is stuck in the top quintile distribution,” Brooks told the FOX Business Network’s Maria Bartiromo on Tuesday. “Effectively, the top fifth of the American income distribution has a 5% growth rate and the bottom four-fifths is experiencing a 0% economic growth rate since Obama took office.”
President-elect Donald Trump has said if big and small businesses have lower taxes and less regulation, they will create more jobs and boost everyone at the bottom. Brooks said job creation also comes from new business.
“One-hundred percent of the job creation over the past years has come from businesses that are five years old or less,” he said, noting that entrepreneurship must be created at all levels.
“You have to think about the ecosystem, which is easy to start organization, and by the way, not just software firms and biotech firms, its people who are putting gutters on houses,” Brooks said.
He also discussed how uncertainty impacted economic growth during the Obama Administration.
“People think that somehow Barack Obama was really predictable,” he said. “Policy uncertainty probably cut one half of one percent, fifty basis points, off GDP growth over the past eight years.”
Brooks said he believes no matter what Trump tweets, it won’t be more unpredictable than the Obama administration.