I’m Mary Walden, with economist MW, welcoming you to the economic perspective. Today’s program asks if 2% is as good as it gets? Mike, last year the economy grew at almost a 3% rate, which is very close to the annual average since World War II. This year we will probably be lucky to see 2% growth. Is there cause for concern?
Mike: Summary Answer
- Some say growth rate will pick up if trade deals are made
- Others say last year was an aberration caused by the 2017 tax cuts
- Still others say 2% is the new normal
- Reason – a big factor behind economic growth is population and worker growth
- Both have slowed in recent decades, as they have worldwide
- If continues, slower total growth will result
- But if look at per capita GDP growth rate, still a slowdown in last 20 years
- So still an issue – maybe aging, education?
- I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.