United States Gross Domestic Product
Updated Daily. Report Quarterly.
2020 Second Quarter
Pandemic Policy without a Plan
The Pandemic wreaked havoc upon the global economy in the second quarter. The US was not immune. A once-in-a-hundred-year event left policy makers with little institutional memory to respond. While the fiscal response was massive in scale, it was unfocused. This decision places the US at a competitive disadvantage versus the rest of the world as the recovery takes shape. Fortunately, there is still time to act.
A decline of nearly four percent is expected for 2020. This drop is the largest in over a hundred years. The four trillion dollar debt expansion over the last two years makes the starting point difficult for the US. Adding the additional four trillion of debt brought by the Pandemic fiscal response ensures higher debt services and taxes are in the future. Future growth will slow.
Avoiding a depression in certain sectors of the economy is paramount. Targeted fiscal policy should help those in need. The critical concern is avoiding changes to consumer behavior that will endure for a generation. Time is of the essence.
US Economic Dashboard