Why Has the U.S.Economy Been Doing So Well
Why Has the U.S.Economy Been Doing So Well? BY ARTHUR MACEWAN
The article addressed the growth of economy from 2009 till now, it explain the causes of economic growth, or the reasons why economy is doing well as it is the longest expansion spell, and also it’s been a slow expansion historically, where average GDP growth per year is 2.24%, one of the reason it’s long is that it was slow, lower interest rate policy by Fed, the lower cost of raw material are also the source of expansion as it put less cost pressure on profits.
The limited efforts by government to stimulate the economy is one of the reason of slow growth. American Recovery and Reinvestment Act of early 2009 did boosted the economy out of recession, but it was neither large enough nor long lasting to support rapid growth over the coming years.
Unemployment rate also deceased steadily over a course of time, from its peak of 10% in 2009 to unusual low of 4%. The increase in wage was slow, average hourly payroll has increased a little above 4% only, which has led to increase in income inequality among the rich and poor. The corporate tax cut at the end of 2017 stimulated the economy but largely it favored the rich, and the desired results of investment surge was also not achieved. The slow growth and increased disparity means although the economy is doing well but people are not.
In the wake of mixed signal from the economic indicators and the expectations that economy might not do well in future, the article got my attention, to know and to develop the understanding what were the factors that resulted in such a long expansion, and the policies that could be pursued in order to save the economy plunging into recession.Why Has the U.S.Economy Been Doing So Well