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.