America and the World took a stop in place for 6 months a year ago….
A LOT of people are out of work…
A LOT of business are gone….
Mayor cities have empty office buildings that may never refill …
State and local governments have holes in their budgets and some are laying people off…
President Biden wants to dump over a Trillion Dollars back into the economy…
All the above and bean counters are worried about TOO GOOD of an economy?
Where where these people when Trump and the Republicans where passing out tax relief for the rich and corporations that grew a budget imbalance BEFORE the pandemic hit?
(We heard from some ‘economist’s about a ‘V’ shape recovery that was ‘supposed’ to have started last October…It didn’t)
We have people now saying that China’s economy could overtake the American one in 5 years if things stay the same here…
The U.S. economy, most experts say, clearly needs a push to re-create the kind of growth that made Americans so prosperous in the last half of the 20th century. Over the past 20 years, by contrast, the U.S. economy grew at an average annual rate of just 1.9 percent, well below the 3.5 percent figure between 1980 and 2000.
Expanding the labor force — either through immigration or by making it easier for women to return to work — and modernizing the nation’s infrastructure would deliver faster long-term growth, many economists said. Growing over the next decade at an annual rate of 2.5 percent rather than the tepid 1.8 percent pace the Congressional Budget Office expects would produce nearly $11 trillion in additional economic activity.
“Policies make a difference,” said economist Julia Coronado, president of Macropolicy Perspectives. “There’s scope to move toward a higher run rate.”
Despite the decline in the official jobless rate, roughly 10 million fewer Americans are working today than were employed last February. More aid from Congress plus a spike in consumer spending could cause “some upward pressure on prices” but it “will be neither large nor sustained,” Powell said.
“We are still very far from a strong labor market whose benefits are broadly shared,” the Fed chair said last week.
But Robin Brooks, chief economist for the Institute of International Finance, an industry group, said financial markets are beginning to register concern. One measure of inflation expectations, the 10-year treasury break even rate, has jumped since the November election to 2.2 percent, its highest level in more than two years.
“That thing is screaming,” Brooks said. “Perhaps we’re overdoing it.”
At issue is how far below its potential the economy is operating, a measurement that economists call “the output gap.” Those who worry about overheating say the economy was operating close to its limits before the pandemic hit and would be pushed beyond them by Biden’s plan.
CBO says the economy now is about 3 percent below its potential. But using a different calculus, Goldman Sachs this week pegged the gap at 6 percent.
“Trying to estimate potential growth is more an art than a science,” said Megan Greene, global chief economist at the Harvard Kennedy School of Government….