The Biggest Threat to the US Economy Is Policy Makers
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Something still feels off in this economy. It’s booming in many respects, with a strong labor market, healthy corporate and household balance sheets, and a lot of consumption. But some, like JPMorgan Chase & Co. CEO Jamie Dimon, are worried we’re seeing the calm before the storm. There are signs things could get gnarly. Inflation is at a 40-year high, shelves are empty, real wages are shrinking and labor is in short supply.
Government and monetary policy will play an important role in how this works out, but those policies are also the biggest risk to US growth going forward.
In their natural state, economies grow more than they shrink. Humans are remarkable for their ability to innovate and their desire to make their lives better. But growth isn’t guaranteed. Many countries have adopted policies that undermined growth. In the early 20th century, for example, Argentina had the same GDP…
