Economic growth since 2010, during the “recovery,” has each year been between 2 and 2.5 percent in the United States, which, to use a term employed by PhD-level economists I know, really sucks. This, along with growing federal government offers of free stuff, explains why the labor force participation rate is the lowest it has been in 40 years and why income growth has stagnated.
In a little-noticed development last month – the New York Times, for example, relegated it to the B Section – the Federal Reserve actually LOWERED its growth forecast for the year, pegging it to between 1.8 and 2 percent growth. In other words, even worse than usual for the Obama era. It had been forecasting growth in the range of 2.3-2.7 percent.