‘If it bleeds, it leads”—the old journalistic saying is true among the financial media. The most recent source of media-inspired economic anxiety is the idea that earnings growth is too good and American companies are reaching “peak” earnings. The assumption is that the tax cut’s impact on the economy and markets will be ephemeral, a small dose of adrenaline before a return to the “new normal” of subpar growth.
True, the tax cut created some one-time earnings benefits. But it is unreasonable to expect the stimulative effects...