Monday, April 9, 2018

Congressional Budget Office Releases Economic Output until 2028

Potential GDP throughout 2018 to 2028 has risen. This will come at a cost of higher interest rates, prices and larger government debt. The next couple of years will experience higher growth and this will moderate in the following years.

Good news is that labor will also be in demand. Because of the stimulus and increased activity people will be able to find jobs. This may cause some problems because as wages rise, not that this is a problem, interest rates will also rise with it and that can slow down the economy.

I'm always concerned about debt. Debt can work when companies reinvest in the market. If they don't do this then there isn't increased economic activity, the debt mounts, and slows down future activity. We still don't have a clear understanding of how this will play out in the end.

You can read the report here.....

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