Sunday, August 7, 2011

America’s Economy Might Double Dip

Abdul H. Azeez

They showed not only that the recession was deeper than what was apparent at the time; they also showed that subsequent growth was not as high as pre-recession levels. Output has grown by only 1.6 percent over the last year. This is well below what leading economists consider to be the underlying growth rate. This means that the US has under-utilized resources and is not operating efficiently. The lagging unemployment level is the evidence for this. Past records indicate that this pace of growth is almost always followed by a recession.

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