The Intelligence from The Economist Growth anatomy: America’s expansive decade
Jul 3, 2019
Idris Kalun, U.S. policy correspondent for The Economist, dives into the record-breaking economic growth in America post-2008 and its sustainability. He discusses the narrowing racial gap in life expectancy, highlighting health improvements for black men amidst ongoing challenges like the opioid crisis. Additionally, Kalun explores the role of the Federal Reserve in navigating potential economic downturns, all while touching on cultural phenomena like the obsession with avoiding spoilers in entertainment.
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Slow and Steady Growth
- America's decade-long economic expansion has been slow and steady, not a continuous boom.
- The low unemployment rate and sustained growth are unusual but not miraculous.
Fed's Role in Sustained Growth
- The Federal Reserve avoiding calamitous policy errors, like premature interest rate hikes, contributed to the long expansion.
- Europe's 2011 rate hike led to a second recession, highlighting the impact of such decisions.
Trump's Mixed Economic Legacy
- Donald Trump's fiscal stimulus boosted growth initially, but the trade war is now a primary threat.
- The trade war fuels uncertainty and impacts capital investment, potentially causing a slowdown.