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We have been out of recession (in the USA) since '08, which historically is a long time. Furthermore, we are at full employment, with unemployment at 4.7%. So
by arcanus 10y ago
We have been out of recession (in the USA) since '08, which historically is a long time.
Furthermore, we are at full employment, with unemployment at 4.7%.
So we certainly could see the end of this business cycle soon. That alone is not a cause for concern, but I am worried about the general lack of ammunition available to central banks in the eventurbine they need to stimulate the economy.
- baron816 10y agoEconomic expansions don't die of old age. The current one is long for the US, but not for many other countries. That being said, it is a problem that the Fed can't cut interest rates any more, and Congress is vehemently opposed to any fiscal stimulus. I believe our only hope is "helicopter money," ie a UBI executed by the Fed. If the Fed gave out $2000 to everyone (or maybe just the bottom 20% of the income bracket), that could work. It would significantly help the most vulnerable and wouldn't just drive up prices on financial assets. I really think the Fed should start setting up the infrastructure for this now.
- cmdrfred 10y agoTax the wealthy to provide subsidies for the poor, what do you think this is Switzerland? We will probably see more tax cuts for the upper quintile and some yelling about how, eventually, one day, it's all going to come trickling down.
- arcanus 10y ago> Economic expansions don't die of old age. I don't disagree, my comment was purely empirical. According to the historically observed frequency of recessions in the USA, we have gone longer than is typical.