US will lack fiscal space to respond when next recession comes
by Jeffrey Frankel from on (#3XMSH)
The economy is doing well but the US is in a weak position to manage the inevitable shock
The US economy is doing well. But the next recession - and there is always another recession - could be very bad.
The US Bureau of Economic Analysis estimates that GDP growth in the second quarter of 2018 reached 4.1% - the highest since the 4.9% achieved under President Barack Obama in 2014. Another year of growth will match the record 10-year expansion of the 1990s. Add to that low unemployment and things are looking good.
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