Wow, so many comments here just spouting tribal talking points without actually looking at what the article is saying.
The article's conclusions look wholly reasonable to me. Americans (well, the wealthy ones anyway) got a massive tax cut, and interest rates are likely to come down, especially once JPow is replaced. That should lead to greater economic activity.
However, it will also very likely lead to higher inflation, which was never really tamed, and even greater wealth inequality. That is likely to lead to even more political discontent, and I don't think anyone has a crystal ball on how that will eventually play out.
The Economist also had an article just before the 2024 election saying how the US economy was so great and the envy of the world. And that may have been true looking at aggregate numbers, but it's pretty clear huge swaths of the US electorate have seen their economic situation deteriorate. Large numbers of people on Obamacare will no longer be able to afford their health insurance, and if interest rates do come down as expected it will probably make homeownership even more unaffordable. Nevermind the real risks of the federal government's ever increasing debt unsustainability.
The economy may "accelerate", but at some point the deep structural problems will cause the wheels to come off.
The article's conclusions look wholly reasonable to me. Americans (well, the wealthy ones anyway) got a massive tax cut, and interest rates are likely to come down, especially once JPow is replaced. That should lead to greater economic activity.
However, it will also very likely lead to higher inflation, which was never really tamed, and even greater wealth inequality. That is likely to lead to even more political discontent, and I don't think anyone has a crystal ball on how that will eventually play out.
The Economist also had an article just before the 2024 election saying how the US economy was so great and the envy of the world. And that may have been true looking at aggregate numbers, but it's pretty clear huge swaths of the US electorate have seen their economic situation deteriorate. Large numbers of people on Obamacare will no longer be able to afford their health insurance, and if interest rates do come down as expected it will probably make homeownership even more unaffordable. Nevermind the real risks of the federal government's ever increasing debt unsustainability.
The economy may "accelerate", but at some point the deep structural problems will cause the wheels to come off.