The Big Question for the U.S. Economy: How Much Room Is There to Grow?

The Big Question for the U.S. Economy: How Much Room Is There to Grow?

The U.S. economy is thriving at an exceptional rate. However, many people are asking if the U.S. economy is moving too fast? According to Neil Erwin of the New York Times the economy is nearing its fullest economic capacity and GDP potential. This means that if the economy grows at the Congressional Budget Office estimated 2.5% than an economic hike in outputs and inputs is possible. If that doesn’t occur and there is no economic slack than we can expect this will lead to inflation. The raising of interest rates, unemployment rate, and productivity growth are all major factors that play into this scenario. This situation also depends on the Trump administration fiscal policies.

 

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