{"id":132856,"date":"2010-01-03T19:41:10","date_gmt":"2010-01-04T00:41:10","guid":{"rendered":"http:\/\/blogs.wsj.com\/economics\/2010\/01\/03\/us-economy-likely-to-perform-poorly-over-next-decade\/"},"modified":"2010-01-03T19:41:10","modified_gmt":"2010-01-04T00:41:10","slug":"u-s-economy-likely-to-perform-poorly-over-next-decade","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/132856","title":{"rendered":"U.S. Economy Likely to Perform Poorly Over Next Decade"},"content":{"rendered":"

The U.S. economy is this decade likely to perform as poorly as the one that just ended due to higher savings by more cautious Americans and a less qualified labor force, several top economists said Sunday.<\/p>\n

The world’s largest economy is expected to see between 2009 and 2019 growth in gross domestic product – a broad measure of economic activity – close to the annual average of 1.9% seen between 1999 and 2009, economists said. That marked the worst performance since the 1930s, the decade of the U.S. Great Depression.<\/p>\n

The economic recovery seen from the second half of 2009 has been driven by a government stimulus that will be fading in 2010, warned Martin Feldstein, a Harvard University economist and former Reagan administration economist.<\/p>\n

“It’s easy to be dismal about the U.S. economy,” said Dale Jorgenson, an expert on productivity who sees a deterioration in the quality of the labor force causing productivity growth to fall to 1.5% a year this decade from 2% a year in the last 10 years.<\/p>\n

Following a financial crisis that was partly a result of Americans spending beyond their means, Nobel-laureate economist Joseph Stiglitz said the U.S. savings rate could go markedly higher in the coming years.<\/p>\n

“We’re not likely to have robust growth any time soon,” Stiglitz told a panel at the annual meeting of the American Economic Association entitled “Growth or Stagnation After The Recession.”<\/p>\n

Both Stiglitz and Kenneth Rogoff, a Harvard University economist, warned the large debt accumulated to counter the crisis will be a major headache for the U.S. economy. They also cautioned there could be a new crisis down the road unless the U.S. regulatory system is improved.<\/p>\n

On a more optimistic note, economists said China and India should continue to propel the world economy forward, which in turn would help the U.S.<\/p>\n

Feldstein said there could be a substantial improvement in net exports out of the U.S. “That’s where we could see a shift in aggregate demand, which could bring us back to full employment.”<\/p>\n

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The U.S. economy is this decade likely to perform as poorly as the one that just ended due to higher savings by more cautious Americans and a less qualified labor force, several top economists said Sunday. The world’s largest economy is expected to see between 2009 and 2019 growth in gross domestic product – a […]<\/p>\n","protected":false},"author":850,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-132856","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/132856","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/850"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=132856"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/132856\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=132856"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=132856"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=132856"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}