In an interview with The Economist last week President Trump stated that his overarching economic goal is to raise the US growth rate to a giddy three percent. That is the only way to bring more Americans into well paid employment and to secure the fiscal foundations of a massive new infrastructure programme and increased state spending.
Back in the day – indeed from 1945 to the first oil shock of 1973 – that goal would have seemed reasonable by American standards. But, on the basis of the last ten years since the financial crisis, three percent seems optimistic – being one percent higher than the rate that most economists think is sustainable.
In fact, in his book The Rise and Fall of American Growth, Robert J Gordon, professor of economics at Northwestern University, argues convincingly that the trend growth rate in the US has been in long-term decline since as far back as the 1870s. These long-term trends are difficult to reverse.
by Zak Mir| Trading| 1 mins. to read Echo Energy (LON:ECHO), formerly Independent Resources, has already been one of the micro cap stocks of the year to date. It would appear from the daily chart configuration that a new leg to the upside should be with us within days.
by Filipe R Costa| Economics| 6 mins. to read Since the beginning of the year, I have been drawing the attention of the reader to the lack of volatility in U.S. markets, as such a high level of complacency is extreme by historical standards and is not supported by current fundamentals.
by Zak Mir | Trading | 1 mins. to read Having interviewed the CEO of Challenger Acquisitions (LON:CHAL) a couple of times, and having liked the concept behind the company, it is good to see the first stirrings of recovery for the stock price.
by Robert Stephens | Equities | 5 mins. to read Investor expectations can be a gift or a curse. Sometimes they allow investors to buy shares at discounted prices because the market expects a difficult period.
by John Kingham | Equities | 8 mins. to read Over the last two of month's I've outlined a series of ten questions which I use to help me avoid yield traps.
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