The U.S. Economy

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The U.S. Economy

This past month, the Mackey Advisors team attended an economics presentation by Alan Beaulieu, the President of ITR Economics and a leading authority on global economics.  His presentations are informative and detailed providing unique insight into economic trends; both short and long term.  His latest report was positive and upbeat, especially for the United States.

The U.S. economy continues to be the largest and most important economy in the world.  Representing about 20% of global output, it is larger than any other economy on the planet, including that of China’s.  The U.S. economy maintains its powerhouse status through a combination of unique characteristics.

  • The country has access to abundant natural resources and a sophisticated physical infrastructure
  • It has a large, well-educated and productive workforce. Moreover, the physical and human capital is fully leveraged in a free-market and business-oriented environment
  • The government provides political stability, a functional legal system, and a regulatory structure that allows the economy to flourish
  • The people of the United States include a diversity of immigrants, brings a solid work ethic, as well as a sense of entrepreneurship and risk taking to the mix
  • Economic growth in the United States is constantly being driven forward by ongoing innovation, research and development as well as capital investment

Our economy has emerged from a period of considerable turmoil called the Great Recession.  It received support through expansionary monetary policies which included not only holding interest rates down, but also the unconventional practice of the government buying large amounts of financial assets to increase the money supply to hold down long term interest rates.

The U.S. Consumer is in great shape; interest rates remain favorable, employment is rising, as are wages, banks are lending, people are buying (retail sales are at record high levels), the housing market is active and robust, and commodity prices are seeing increased demand due to economic activity.  All-in-all, the United States remains the most vibrant and productive economy on the planet.

By | 2017-04-18T20:32:59+00:00 March 15th, 2017|Categories: On Our Minds, Uncategorized|Tags: , , , , , |0 Comments

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