COVID Stimulus Bill: Democrats Deficit Spending Brings Risks

NRPLUS MEMBER ARTICLE

M
aybe a boom is not what we need.

The economic forecasters are expecting a big 2021, and have been revising their growth forecasts upward in anticipation of another $1.9 trillion in stimulus spending.

How big a boom? Goldman Sachs estimated 6.6 percent GDP growth back in January, and more recent estimates from other firms have run as high as 9 to 10 percent. (For comparison, consider that in the postwar era the United States has never seen a year of 9 percent GDP growth.) The more conservative forecast survey published by the Federal Reserve Bank of Philadelphia foresees GDP growth at 4.5 …