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Joe's boom
6/5/21 00:36![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
fridiSome are now speaking of a Biden boom. Although the first quarter of the year has passed, the data keeps mounting in favour of a real growth forecast. Even if based on partial data (as of yet), the expected growth of the US economy is hovering around 7-8%. More importantly, the outstanding first quarter will likely not be alone. A recent WSJ research registered a median growth forecast of 6.4% for 2021.
If this really is the case, that'd be the fastest recovery since 1984. That boom came after a deep recession, and brought the famed Reagan "Dawn of a new America", and consequently, his landslide victory. Clinton's boom was similar, but Biden's potential boom won't be entirely due to the president's policies. But they'll surely be of help.
Much of the credit goes to vaccination - including accelerated vaccination under Biden. Another factor is the remarkable resilience of the US private sector. Hundreds of millions of people and tens of millions of businesses got stuck in their own cells when Covid-19 hit, but then they crawled back out, finding new ways of doing business and trading.
The private economy has also received a huge boost from the government. Contrary to Reagan's famous words, the government actually turned out to be a major part of the solution. The huge fiscal push came from the 2.2 trillion dollar stimulus bill passed with a large majority by Congress in March 2020. Although there could be many reasons for criticism for that law, it did give so much money into American hands that the real personal purchase power has increased by 3% for 2020, despite the GDP shrinking by 2.4%. That's remarkable.
( Read more... )
If this really is the case, that'd be the fastest recovery since 1984. That boom came after a deep recession, and brought the famed Reagan "Dawn of a new America", and consequently, his landslide victory. Clinton's boom was similar, but Biden's potential boom won't be entirely due to the president's policies. But they'll surely be of help.
Much of the credit goes to vaccination - including accelerated vaccination under Biden. Another factor is the remarkable resilience of the US private sector. Hundreds of millions of people and tens of millions of businesses got stuck in their own cells when Covid-19 hit, but then they crawled back out, finding new ways of doing business and trading.
The private economy has also received a huge boost from the government. Contrary to Reagan's famous words, the government actually turned out to be a major part of the solution. The huge fiscal push came from the 2.2 trillion dollar stimulus bill passed with a large majority by Congress in March 2020. Although there could be many reasons for criticism for that law, it did give so much money into American hands that the real personal purchase power has increased by 3% for 2020, despite the GDP shrinking by 2.4%. That's remarkable.
( Read more... )
