Summary: The U.S. economy is performing exceptionally well, with high employment rates, low inflation, and rising wages. Despite some skepticism, job growth remains strong, and inflation has returned to target levels. Overall, the economic outlook is positive, surpassing expectations compared to other wealthy nations.
Essentially, there are four things you want from a macroeconomy:
You want high employment rates, so that everyone who wants a job has a job.
You want low and stable inflation rates, so that people know how much a dollar will be worth a month from now.
You want fast wage growth, so that regular working people are taking home their share of economic growth.
And you want fast productivity growth, because ultimately that’s what creates durable gains in living standards.
Right now, the U.S. economy is giving us all of those things. (View Highlight)
The post-pandemic inflation has been conquered. Inflation could come back, of course, and we have to be vigilant. But for right now, the problem is gone. (View Highlight)
it is remarkable how the U.S. is managing to have both faster growth and lower inflation than other countries at the same time.
To sum up, America’s economic performance is amazing. It’s doing better than any rich country could expect to be doing. (View Highlight)
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