Get Ready For 2% Growth

Somehow we have gotten the idea that the economy can grow at a 3% to 5% rate.
But that rate of growth tends to be inflationary and harmful. We live in such tremendous abundance right now that we could be fine with no growth at all or even with a decline.

But people are addicted to growth. They go crazy if growth does not continually accelerate.

Policymakers need to understand that rapid growth is not going to happen. Policy must be adjusted for an expectation of 2% growth. Depending on higher growth will cause some very bad trouble. I read that the federal deficit increases out of control at less than 4% growth. The feds need to face reality and live more prudently.

Times are good. But living beyond your means always leads to trouble.