by John H. Makin
American Enterprise Institute
January 09, 2014
Economic Outlook
The United States has seen disappointing economic growth of at or less than 2 percent of gross domestic product per capita since the 2008 financial crisis, and some economic experts have suggested that the nation may be in a period of secular stagnation, or protracted slow growth, similar to what followed the Great Depression. They propose further monetary and fiscal stimulus, but those have proven to provide only a temporary boost for short-term growth. Traditional macro policy also will not boost long-term growth. While improving long-term growth is difficult, the best places to begin are with advances in areas such as tax reform, deregulation, and freer trade. These structural measures, along with efforts to reduce current high levels of policy uncertainty, might help boost sustainable, long-term economic growth.



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