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The US economy is booming like it hasn't been in a long time

The US economy is booming like it hasn't been in a long time

Supermarket customers in California: Consumption is one of the pillars supporting economic growth in the United States.
Image: EPA

President Joe Biden's economic policies have been heavily criticized. The particularly strong growth of the US economy right now surprises many economists. They predicted a deep recession.

AOn October 1, 2023, business media Bloomberg published one of its in-depth analyses, suggesting that a recession in the United States is almost lurking around the corner. It was too optimistic, because the mood of experts had already changed in the autumn and a soft landing for the economy suddenly seemed conceivable. After a good three weeks, the growth rate for the third quarter was announced: the US economy grew by nearly 5 percent for the year, surprising some observers.

Bloomberg economists remained pessimistic. Almost a year ago, based on an in-house forecast model, they had already asserted that the church was Amen, 100 percent sure of recession. They know they are in good company. Harvard economist Larry Summers is not only one of the staunchest critics of the Biden administration's spending policy, but he blames it for high inflation in the United States. He also predicted that inflation would not be brought under control without a significant increase in unemployment. “We need five years of unemployment above 5 percent to keep inflation under control, or in other words, we need two years of 7.5 percent unemployment or one year of 10 percent unemployment.”