The Coming Trump Boom

by Newt Gingrich

By the summer of 2026, we should be in the early stages of what will come to be known as the Trump Boom.

Treasury Secretary Scott Bessent’s excellent May 4 Wall Street Journal column crystallized my thinking about the economy.

There is a lot of anxiety and confusion about the implementation of President Donald J. Trump’s tariff policy. Further, there are uncertainties about the Republican budget bill being debated in Congress, the Federal Reserve’s interest rate decisions, and potential violence around the world.

Meanwhile, there have been endlessly negative articles in the opposition media, hand wringing by the anti-Trump establishment, and overreactions in the stock market based on random noise.

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 and reformed welfare, 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.

Then in 2017, President Trump combined tax cuts with deregulation – and a liberation of the energy industry – to create 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. Unfortunately, much of this was set back by the global COVID-19 pandemic.

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.

President Trump’s current economic program is a case studying in maximizing incentives for economic growth, job creation, energy production, lower inflation, 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 “Big, Beautiful Bill,” will cut taxes and spending, encourage energy production, and shift welfare programs from dependency back to the working independence 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 and 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 (including many new factories) will 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 website lists trillions of dollars committed to making America more prosperous.

Desire to invest and 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. It will increase our national security, revolutionize our communications systems, and create jobs in new manufacturing and 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.

For more commentary from Newt Gingrich, visit Gingrich360.com. Also, subscribe to the Newt’s World podcast.

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