America’s economic position gained strength in one of the quickest recoveries ever. GDP growth reached a phenomenal 7.4% in the third quarter (July-September 2020), the greatest quarter to quarter growth ever in American History. The overall annualized rate hit 33.1% with labor rates similarly rebounding. On November 6th, the Wall Street Journal summarized recent data as follows: “Employers added 638,000 jobs last month—the sixth straight monthly gain—and the jobless rate fell a percentage point to 6.9%, the Labor Department said Friday. The job market has now recovered 12.1 million of the 22 million jobs lost in March and April, when the shutdown of businesses led the jobless rate to soar to a post-World War II high of 14.7%.” An impressive rebound resulted as pent-up demand for work, production and employment flew in the face of covid-related impediments to business.
American economic resilience has been proven once again with a bounce back to what was one of the best economic periods in U.S. History. One of the few negative aspects of the economy pre and post covid is the national debt. Currently, the U.S. National debt is over $27.88 trillion, up from $20 trillion in 2016 and on track to reach $48 trillion by 2024.
Historically, the national debt almost doubled under President Obama from $11trillion to $20 trillion with another doubling under the Trump / Biden administrations. National debt has soared under most recent presidents with the exception of Bill Clinton. Congress and the U.S. President have had little taste to address one of the most burdensome and potentially troubling long-term impediments to U.S. economic success.
Beyond rampant government expenditures, is a decline in economic output due to covid lockdowns and restrictions. Over $5 trillion in stimulus spending by the federal government with more to surely follow begs the question – Where is all this money coming from? The answer is the government printing press, real and digital. Inflation, mounting debt and a spendthrift policies are surely to impact America in the years to come.