U.S. Economy Might Be Condemned to Relive the ‘70s
Without more housing, workers, hospitals and child care, shortages will hold back growth like the oil embargo did almost 50 years ago.
It was no fun.
Photographer: ClassicStock/Archive PhotosA Joe Biden presidential administration, which is becoming more probable as his lead in the polls grows, probably will try to avoid the mistakes that held back the economic recovery after the 2007-09 Great Recession. His fiscal agenda is getting bolder. The Federal Reserve is also pledging to keep monetary policy loose until inflation actually emerges.
But potential supply bottlenecks loom if the U.S. breaks out of the slow-growth trap that has plagued the economy during the past decade. That suggests the economy will need reforms that increase supply in housing, the labor market, and in health care and child care.