Commentary There’s an overly optimistic consensus view about the speed and strength of the U.S. recovery that’s contradicted by facts. It’s true that the U.S. recovery is stronger than the European or Japanese one, but the macro data shows that the euphoric messages about aggregate GDP growth are wildly exaggerated. Of course, GDP is going to rise fast, with estimates of 6 percent for 2021. It would be alarming if it didn’t after a massive chain of stimuli of more than 12 percent of GDP in fiscal spending and $7 trillion in Federal Reserve balance sheet expansion. This is a combined stimulus that’s almost three times larger than that of the 2008 crisis, according to McKinsey (pdf). The question is, what’s the quality of this recovery? The answer is: extremely poor. The United States’ real growth excluding the increase in debt will continue to be exceedingly small. No one can …
-
Recent Posts
-
Archives
- May 2025
- April 2025
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- September 2013
- July 2013
- March 2013
- January 2013
- December 2012
- November 2012
- December 1
-
Meta