In a blog for Business Insider, Matthew Boesler went over the state of the U.S. economy, both now and going forward. Based on research, the current economic projection for the United States economy is certainly that of a declining GDP growth rate, but there is some question as to the credibility of that projection. Economists cannot seem to agree on whether or not the residual effects of the global economic crash should be accounted for in projection. Essentially, whether or not the residual effects are now part of the U.S. economy going forward or whether they will be something that will go away. The effects that Boesler references are poor technological implementation, unsuitable labour matches, and an overall absence of business investment. Some researches believe that the U.S. economy should be able to quickly revert itself back to its former structure, but others believe that the aforementioned problems might be recurring themes for the foreseeable future.
As someone on the outside it’s nearly impossible to tell where exactly the U.S. economy will fall. However, one can still look at the feasibility of the economic concerns as a whole. With that said, as Boesler seemed to indicate at the end of his piece, the faults of the current U.S. economy are not eternal. As we know, in business, nothing is stagnant…the markets will rise and they will fall. The same can be said for the projected U.S. GDP. The projections were fairly rosy prior to the economic collapse and are only pessimistic now as a result of fear in the market, fear to spend. As we move on from the economic collapse that fear should subside and the markets will adjust themselves accordingly.
Sources:
Business Insider – http://www.businessinsider.com/is-us-potential-gdp-in-structural-decline-2013-11
Picture Courtesy of Ben Schueddekopf via Flickr