This Week's Forecasts & Trends E-Letter
The Economy: Growth Has Been Weak But Long-Lasting
October 18, 2016
Forecasters who were predicting a surge in the economy in the second half of this year have revised those estimates much lower in recent weeks. It now looks like the economy may not achieve even 2% growth this year. Today, we’ll look at some of the reasons why.
While economic growth has been anemic, the recovery since mid-2009 has been the fourth longest in history. Since World War II, the American economy has typically grown for about five years on average, as shown below, and then had a contraction. This expansion, which officially began in June 2009, is already over seven years old.
Increasing numbers of Americans feel “poor.” I will provide one particular chart today which illustrates why so many people feel that way today. I think you’ll find it very interesting. Let’s get started.