Quote:
Originally Posted by Sexxxy Sites
Both of us will have to wait and see if the process works at all, or does work but only for the short term, or it does work and the US economy continues to grow and maintain its status as the worlds largest economy for the long term (at least until China, or perhaps some other country, may, or may not surpass us). I personally predict it will be for the short term, if it works at all.
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US GDP per person grows pretty steadily. Check out this chart. I'd say the long-term trend is really clear. Sometimes we get a little off trend. We can wait until we get back on trend or we can deficit spend at the cost of some additional debt and inflation. I'd prefer the latter. it's just too painful on too many people for too long to have too much of an output gap for too long.
Now here is the historical output gap and projected output gap without stimulus.
Here is a closer view:
