| Sumario: | The current sense that the United States is on top of the world is based largely on a huge exaggeration of a few good years. Nothing in recent experience suggests that the U.S. economy is capable of more than roughly 2.5 percent growth in an average year. It is likely that the sustainable unemployment rate has dropped, however, perhaps by as much as 1 percent, allowing the economy to produce 2 percent more in an average year than was thought possible. The prospects for America's main rivals—Japan, Europe, and Asia—are discussed.
|
|---|