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The economy has entered a period of supercharged growth, and instead of fizzling, it could potentially remain stronger than it was during the pre-pandemic era into 2023.
Economists now expect the second quarter to grow at a pace of 10%, and growth for 2021 is expected to be north of 6.5%. In the past decade, there have been few quarters where gross domestic product grew at even 3%. Forecasts for 2021 and 2022 were revised higher after Congress approved $1.9 trillion in fiscal spending, on top of an earlier $900 billion package late last year.
Biden's $2T infrastructure plan will have a positive multiplier effect, easily resulting in GDP gains greater than the $2T invested, and the long-term positive effects of the infrastructure will benefit the economy far more than the costs of raising the corporate income tax. This would be consistent with other large infrastructure programs, such as FDR's rural electrification and dam-building and Eisenhower's interstate highway initiative.
People are kidding themselves if they think printing up trillions of dollars and handing them out at near zero percent can be done without horrible consequences.
Well stated.
Although it may take a while to prove it to be correct.
People are kidding themselves if they think printing up trillions of dollars and handing them out at near zero percent can be done without horrible consequences.
As long as most people and businesses can continue to pay off their loans, it's nothing to worry about.
If Trump had won, there would have been legions of Trumpers broadcasting projections like this up the kazoo on this board, and giving Trump credit. So I'm merely doing whatever they would have been doing.
It happens every time there is a new president, especially if they are from the opposing party. Republicans were giving Trump credit right off the bat after he was elected because the stock market took off while democrats said Trump was riding on Obama's coat tails. I'm an Independent that leans right.
I gave Obama credit for turning the economy around after Bush, even though it was the slowest rebound in history. I gave Trump credit for continuing that trend and actually giving it a boost with the tax cuts and jobs act (I refuse to argue with anybody else who claims it didn't help most Americans because it did).
I do not, however, give Biden any credit for the current economic boosts simply because he has not put one policy in place that actually helps the economy. Further, the reason things look so positive is because we are coming out of this pandemic and people are starting to get back to work, school and life. Based upon what Biden says he'll do, I'm actually very concerned. Raising taxes and putting us trillions of dollars deeper into debt is NOT going to help the economy. The infrastructure bill he's proposed is full of spending that has nothing to do with infrastructure and will do very little to repair or replace the stuff we desperately need.
Once that money is spent, we'll still have infrastructure issues. If he'd actually use that money for actual infrastructure projects, I could see how it would help to boost our economy and create jobs. Only time will tell.
Is she stupid? 6% GDP growth? Are they all from government spending?
Considering we are coming out of a pandemic that significantly slowed our economy, it only make sense that we'll see a big jump in GDP. This stuff isn't rocket science. Just like we're seeing a big tick up in jobs, people are going back to work after being laid off and stuck at home for a year.
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