More evidence that government and central bank policy makers don’t seem to know what they’re doing in their many attempts to right what is wrong in the global economy comes via this summary of the International Monetary Fund’s recent downgrades to forecasts for economic growth in this item at the Economist.
You’d think that economists would be catching on by now since, for example, they continue to forecast 3-4 percent growth in the U.S. a couple years out, but, it just never comes. Now four years after the 2008 recession ended, it looks like the U.S will see economic growth of less than two percent which, when factoring in population growth, is barely an expansion.
And, of course, this modest level of growth wouldn’t be possible at all without nearly a trillion dollars a year in deficit spending and another trillion in Fed money printing.
Not to fear, however, as economists are about to revise the way they calculate economic growth and, just as the inflation calculation is repeatedly modified to produce a lower number, we’re about to see a surge in U.S. economic output (and growth) as heralded in Huzzah! The U.S. economy is 3 percent bigger than we thought at the Washington Post.
Source: Iacono Research