Experts on the Economy Speak

 Here are some quotes from different experts on the US economy,

• “Inflation expectations could be a self-fulfilling prophecy if price increases remain sticky, according to one economist. Henry Allen, a macro strategist at Deutsche Bank, wrote Tuesday that the longer inflation remains elevated above the Federal Reserve’s target of 2%, the more likely expectations will move higher.”¹
• “The US economy is breaking in plain sight. Only the savings cushion of the richest 20% are keeping it afloat. And if interest rates keep rising nearly every day, even that won’t be enough.” – Edward Harrison, executive editor of Bloomberg²
• “The U.S. economy grew at an annual rate of 6.9 percent in the fourth quarter of 2023, slightly faster than the previous estimate of 6.7 percent, according to the Bureau of Economic Analysis. For the year, real GDP increased 5.7 percent, the fastest pace since 1984.”³
• “All people, however fanatical they may be in their zeal to disparage and to fight capitalism, implicitly pay homage to it by passionately clamoring for the products it turns out.” – Ludwig von Mises, Austrian economist and philosopher⁴
• “We’ve gone from 60,000 jobs per month to 60,000 jobs every three days — more than 600,000 jobs per month since I took office. More than 3 million new jobs all told.” – Joe Biden, President of the United States⁵
• “The U.S. economy is in a very good place, and we’re seeing tremendous job creation. But we’re also seeing inflationary pressures, and so our challenge is to ensure that those inflationary pressures are transitory, that they don’t feed into higher inflation over time.” – Jerome Powell, Chairman of the Federal Reserve
• “The U.S. economy is facing a perfect storm of supply chain disruptions, labor shortages, rising energy costs, and consumer anxiety. These factors are likely to weigh on growth and inflation in the coming months, and pose significant downside risks to the outlook.” – Christine Lagarde, Managing Director of the IMF
• “The U.S. economy is still recovering from the pandemic, but it has shown remarkable resilience and adaptability. The rapid rollout of vaccines, the unprecedented fiscal stimulus, and the strong consumer demand have boosted economic activity and employment. However, there are still challenges ahead, such as closing the output gap, reducing inequality, and addressing climate change.” – Janet Yellen, Secretary of the Treasury
• “The U.S. economy is undergoing a structural transformation, driven by technological innovation, globalization, and demographic change. These forces are creating new opportunities and challenges for businesses and workers, and require new policies and institutions to support them. The U.S. needs to invest more in education, infrastructure, research and development, and social safety nets to enhance its competitiveness and inclusiveness.” – Paul Krugman, Nobel laureate and columnist for The New York Times
• “The U.S. economy is at a critical juncture, as it faces the dual threats of inflation and stagflation. The Fed’s monetary policy is too loose and too late, and the fiscal policy is too large and too long. The U.S. needs to tighten its monetary stance, rein in its fiscal spending, and implement structural reforms to boost productivity and competitiveness.” – Nouriel Roubini, Professor of Economics at NYU and CEO of Roubini Macro Associates
• “The U.S. economy is experiencing a K-shaped recovery, where some sectors and groups are doing well, while others are falling behind. The pandemic has exacerbated the pre-existing inequalities and vulnerabilities in the economy, and has exposed the fragility of the social contract. The U.S. needs to adopt a more inclusive and sustainable growth model, that prioritizes human well-being, social justice, and environmental protection.” – Joseph Stiglitz, Nobel laureate and Professor of Economics at Columbia University
• “The U.S. economy is on the verge of a boom, as the pandemic recedes and the stimulus kicks in. The U.S. has a unique opportunity to unleash its entrepreneurial potential, and to lead the world in innovation and growth. The U.S. should embrace its strengths, such as its diversity, its openness, and its dynamism, and avoid the pitfalls of protectionism, populism, and pessimism.” – Tyler Cowen, Professor of Economics at George Mason University and co-author of the Marginal Revolution blog
• “The U.S. economy is in a state of flux, as it transitions from the old to the new normal. The pandemic has accelerated the digital transformation, the green transition, and the geopolitical realignment. The U.S. has to adapt to these changes, and to leverage its comparative advantages, such as its innovation capacity, its soft power, and its alliances.” – Anne-Marie Slaughter, CEO of New America and former Director of Policy Planning at the U.S. State Department
• “The U.S. economy is facing a paradox of plenty, where it has abundant resources, but also abundant problems. The U.S. has to balance its domestic and international priorities, and to reconcile its short-term and long-term interests. The U.S. has to restore its fiscal discipline, reform its tax system, and revitalize its infrastructure, while also maintaining its global leadership and cooperation.” – Robert Zoellick, former President of the World Bank and U.S. Trade Representative
• “The U.S. economy is in a sweet spot, where it enjoys strong growth, low unemployment, moderate inflation, and high confidence. The U.S. has benefited from its flexible and resilient market system, its effective policy response, and its diversified and innovative economy. The U.S. should capitalize on its momentum, and pursue further reforms to enhance its competitiveness and inclusiveness.” – Mohamed El-Erian, Chief Economic Adviser at Allianz and former CEO of PIMCO
• “The U.S. economy is in a precarious position, where it faces the risk of overheating, overborrowing, and overstretching. The U.S. has relied too much on monetary and fiscal stimulus, and not enough on structural and institutional reforms. The U.S. needs to address its imbalances, such as its twin deficits, its income and wealth gaps, and its political and social polarization.” – Kenneth Rogoff, Professor of Economics and Public Policy at Harvard University and former Chief Economist of the IMF
• “The U.S. economy is in a golden age, where it enjoys the fruits of its technological and scientific breakthroughs, its entrepreneurial and creative culture, and its democratic and pluralistic society. The U.S. has the potential to solve the most pressing challenges of humanity, such as climate change, poverty, and disease. The U.S. should celebrate its achievements, and share its vision and values with the world.” – Steven Pinker, Professor of Psychology at Harvard University and author of Enlightenment Now
• “The U.S. economy is in a trap, where it suffers from low growth, low productivity, low investment, and low wages. The U.S. has been stuck in a secular stagnation, where the supply of savings exceeds the demand for investment. The U.S. needs to stimulate its aggregate demand, increase its public spending, and reduce its inequality, to escape from the trap.” – Larry Summers, Professor and President Emeritus at Harvard University and former Secretary of the Treasury
• “The U.S. economy is in a bubble, where it is fueled by cheap money, easy credit, and speculative frenzy. The U.S. has created a financialized and debt-driven economy, where asset prices are detached from fundamentals. The U.S. needs to deflate its bubble, deleverage its balance sheets, and diversify its economy, to avoid a crash.” – Robert Shiller, Nobel laureate and Professor of Economics at Yale University and author of Irrational Exuberance
• “The U.S. economy is in a transition, where it is shifting from an industrial to a post-industrial society. The U.S. has to cope with the disruptive effects of automation, globalization, and digitalization, on its labor market, its social fabric, and its political system. The U.S. needs to invest in its human capital, strengthen its social cohesion, and renew its democratic institutions, to adapt to the transition.” – Dani Rodrik, Professor of International Political Economy at Harvard University and author of Straight Talk on Trade
• “The U.S. economy is in a recovery, where it is rebounding from the pandemic-induced recession. The U.S. has demonstrated its resilience and agility, in containing the virus, distributing the vaccines, and supporting the economy. The U.S. should consolidate its recovery, and prepare for the post-pandemic era, by enhancing its public health, its social safety, and its global cooperation.” – Kristalina Georgieva, Managing Director of the World Bank and former CEO of the World Bank
• “The U.S. economy is in a dilemma, where it has to balance its domestic and external objectives. The U.S. has to pursue its national interests, such as its economic security, its technological leadership, and its strategic autonomy, while also maintaining its international commitments, such as its trade openness, its alliance obligations, and its multilateral engagement. The U.S. needs to find a way to reconcile its dual roles, as a sovereign nation and a global leader.” – Zbigniew Brzezinski, former National Security Adviser and Professor of American Foreign Policy at Johns Hopkins