What
is preventing the USA from becoming a 40 trillion-dollar economy? This caption
is deliberately provocative but not unrealistic.
The USA is gifted
with mighty intellectuals, renowned educational institutions, noble laureates
like Paul Krugman, numerous think tanks. Why should the economy grow at 2% or 4%?
Why GDP cannot grow at 10% Or 15% ?
Paul Krugman's
prescription of government spending to boost economy and jobs doesn’t work in
reality.
All the recipes for
economic growth and jobs creation like: government spending, low interest
rates, controlling money supply, and controlling inflation has been tried
without much success.
The United States
did reasonably well when the economy had robust manufacturing till 1970-71.
When the US economy
ignored manufacturing in the name of globalisation, and started listening to
investment bankers, bankers, financial institutions and select economists jobs
became scarce, stock markets flourished,& investment bankers prospered.
Economic
prescriptions need a revisit. The present state of economic prescriptions stifles
the very economy it wants to stimulate. The USA has to generate out of the box
economic prescriptions to grow its economy to become a 40 trillion-dollar
economy.
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