Question
Find 2 news articles published within the last 5 months that discusses U.S. economic growth (short and long term), summarize the key points of each
Find 2newsarticles publishedwithin the last 5 months that discusses U.S. economic growth (short and long term), summarize the key points of each article,and thenaddress part A - C below
Part 1, 2, & 3 :
- The articles you choosemust addressthe likelihood of a 2.9% annual GDP growth rate over the next 10 years. Discuss and explain the other possible GDP outcomes. If inflation is likely then nominal GDP will increase, but what about real GDP which is the real key growth indicator? What is the likelihood of over 2% inflation? Explain.
- What will be the macro economicfactors necessary to establish sustainable economic growth? Discuss and be specific.
- Economic growth impacts consumer spending, employment, business investment, productivity, and exports. If your articles do not discuss these parameters, locate a recent article that does, and discuss.
Background information related to completing topic:
One critical economic assumption made by the Republican Congress (2016-2020), in writing and passing the Tax Legislation bill of 2017, was that economic growth over the next 10 years (2018-2028) wouldaverage2.9% annually. The U.S. 'Treasuryassumesthe U.S. economy will grow 2.9 percent every year for the next 10 years (based on Office of Management and Budget figures). This is a large increase from the 1.9 percent per-year growth that the nonpartisan Congressional Budget Office projected. If this annual growth does not happen, the built in federal deficit to the tax legislation of1.4 trillion dollars would be a reality. That is, the tax legislation passed by the republican senate incurred a 1.4 trillion dollar federal deficit to pay for the lower tax revenue that would have otherwise been collected, and is 'banking' on 2.9% annual growth to 'bail out' this tax deficit over the next 10 years.
The 1.7 trillion stimulus package recently signed by President Biden, adds to the previous 1.4 trillion. The difference is meaningful. The 'tax cut' stimulus (2017) was specifically designed to spur economic growth through tax cuts. The problem is 10 years is a very long time (in economics) and the republican plan did not consider any meaningful obstacles. The pandemic all but scuttled whatever growth was anticipated (i.e. 2.9% annual).
The 1.7 trillion stimulus package (Biden-2021)) is designed to spur economic growth through government spending. In other words it directly impacts aggregate demand.
Now, both plans envisioned economic growth that would increase government tax revenue to pay current expenditures and increasing tax revenue to pay for the anemic tax reduction plan, and the Biden aggregate demand stimulus.
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