True Economics called it ‘the scariest chart in the world.’
That may be a little bit of hyperbole, but a chart showing declining average rates of growth during each economic expansionary period since the 1950s is certainly cause for concern.
Almost non-existent economic growth in the US during the first quarter of 2017 didn’t seem to generate much hoopla in the mainstream media. Most analysts seem to think the tepid 7% growth rate was an outlier. In fact, the Atlanta Fed’s early forecast for Q2 growth is over 4%. As Peter Schiff pointed out in a recent podcast, this seems pretty crazy in light of the economic data. Nevertheless, it was enough to put a pause on Federal Reserve rate hikes – at least for the month of May.
But the weak growth number wasn’t really an outlier. Since the Great Recession of 2008, GDP growth has only averaged about 2%. The pre-recession rate was closer to 3%. In fact, the ‘recovery’ has been weak to say the least.
This post was published at Schiffgold on MAY 5, 2017.