The country remains on track to produce $50,000 in per capita GDP by 2010, up from $44,000 in 2006. The moment will be symbolically important -- demonstrating that the ‘GDP gap’ between the U.S. and the rest of the world will probably widen in the years ahead whether Americans produce the highest rates of growth or not.”
I’m always fascinated by the “Chicken Little” mentality of the news media when the American economy has a hiccup, such as the current sub-prime loan “crisis.” You start hearing and reading things like, “Well, the free ride is over.” “Get ready to tighten your belts, we’re in for tough times.” “The entire foundation of the American economic system is weak and fragile.” Now, think back over the past eight years. The same things were said during the recession that started in President Clinton’s final year. And, in the months following 9/11. And when the price of oil tripled. And in the aftermath of hurricane Katrina. And as the costs of the Iraq and Afghanistan wars escalated. And the impact of “uncontrolled” immigration into the country. And now this latest one. Each one of these events we were warned would be the final straw that broke the back of our economic camel. Of course, while all of this hand-wringing and fear-mongering was taking place, the stock market increased by 40 percent, and more individual wealth was created from all investments than in the previous century. Over the past 12 months, worker productivity has increased by almost five percent, while the economy has added 1.7 million new jobs. Because of the lower dollar against other currencies, the U.S. is about the enter a “golden age of exports” for the next several years. Inflation, unemployment, and interest rates remain very low, leading some economic historians to say this may be the best economic period since the country was founded.
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