The Myth of America’s Great Stagnation
The Age of Innovation Isn’t Over
Is the great age of American economic growth over? You’d be forgiven for thinking so. Despite recovering job growth—the US economy added an estimated 203,000 jobs in November—the United States is likely to experience slower GDP growth in the decades ahead. Since 1960, the rate has been 3.3 percent. But the Federal Reserve predicts a rate of 2.1 to 2.5 percent in the future, and JPMorgan even projects a rate of less than 1.75 percent. The longer trajectory is grim: US economic growth has been gradually decelerating for decades, from a 70-year average of 3.6 percent (1939-2009) to a 10-year average of just 1.9 percent (1999-2009).