I thought this article was interesting for several reasons. First, I think that a 5% annual growth rate in GDP for this year is an achievable goal. But like Larry Kudrow mentioned, this growth is not sustainable forever. I also thought it was interesting that he said that we are down by several trillion dollars from where we should be based on the long term trend of GDP. I initially thought this wasn't true, but looking at the maximum chart over the last 50+ years it makes sense: https://tradingeconomics.com/united-states/gdp. Lastly, I found it strange that the author continued to mention that this growth could help us recover from the financial recession. I thought is was bizarre because I've been under the impression that we have been recovered from the recession for a few years now. Overall, I feel that Kudrow is very optimistic with this 5% annual GDP for 2018, but it is an attainable goal based on the recent performance of the economy.
https://www.cnbc.com/2018/04/05/trump-economic-advisor-larry-kudlow-us-economic-growth-could-hit-5-percent-at-least-for-a-short-period.html
3 comments:
It is reassuring to see Kudrow understand our current standing in regards to GDP. While he says the 5% growth rate is not sustainable, he knows the economy has some room for expanded growth, based on the fact that we have been lagging behind in terms of where our GDP was forecasted to be. It will also be intriguing to see the effects of a short-term spike in growth, as we have been growing at a rather quick pace over recent memory.
Adam raises an interesting point about the current standing with our GDP. The short term growth spike will be interesting to see how it impacts the long term.
Five percent growth is a bold projection, but as you noted, is conceivably possible. Our economic recovery from the last recession, as it relates to unemployment numbers has been back for a few years, but the drawback in regulation across the economy has helped certain sectors find their way out of the shadows they were put in following the recession. I think that is what the article is referring to when they mention the power this growth could have on the economy.
Post a Comment