A Tale of Two Economies

Source: Paul Mueller

“Is this the best economy or the worst economy? It depends on who you ask. Many people say that the US economy is doing great. We have had record stock prices, modest GDP growth, low unemployment, and falling inflation. Current economic forecasts have grown more positive and consumer sentiment has improved. Even real wages, which fell during the high inflation of 2021 and 2022, have begun recovering. Not only is official unemployment low, but labor force participation has also been recovering from its low after the disastrous COVID policy in 2020. … But there are also reasons to suspect that we may be in the eye of the storm, not in its rearview mirror.” (02/12/24)