Biden’s Economic Team Predicts Long-Term Slow Growth
What is noteworthy about the depressing title to this article is its source. In a case of uncommon candor, President Biden’s economic team has announced that once the artificially high, stimulus-juiced GDP (gross domestic product) measurements of the next two years subside, the United States will experience sub–2 percent growth for the rest of the decade. This dismal forecast wouldn’t be surprising if it had come from Biden’s political opponents, but coming out of the White House itself, it is an astonishing admission.
You don’t need to have any specialized knowledge of economics to see why team Biden is projecting protracted slow growth. Consider the previous dozen years.
Shortly after former president Barack Obama left office, I explained why he had presided over a historically weak economy:
During the eight years of Barack Obama’s presidency, the average annual real GDP growth was 1.5 percent—the weakest economic performance of any post-WWII president, and the fourth worst ever…. The average growth of real GDP in the 10 most recent previous recoveries from recessions was 33.5 percent; under Obama, it was 17.1 percent. If the Obama recovery had been merely average, today’s GDP would be $2.4 trillion higher ($19,000 in lost income per household over those eight years). There have been 12 million fewer jobs created than would have happened in an average recovery.
The depressing economic weakness was a direct consequence of his policies:
Even the signature piece of legislation that Obama claimed was his crowning achievement, the Affordable Care Act, has wrought economic harm on millions of Americans. For millions, their employer cut their hours (their income) to avoid the heavy burden of Obamacare taxes. For millions of others, health insurance premiums and deductibles
Article from Mises Wire