The U.S. Economy Reaches Superstar Status

[FireDragon76]

It depends on what constitutes the GDP growth. In the USA, it was mainly healthcare and social services. If you have a lot of sick people and the most expensive and ineffective healthcare from the developed countries, it will create GDP, but... is it a good thing?

There are alot of Americans with chronic illnesses, so that could account for the spending. See below:

More money moving into the economy is a good thing, if one cares about wages, standard of living, etc. And...

Are you familiar with the Parable of the Broken Windows?

Parable of the broken window - Wikipedia

en.wikipedia.org

 

[trophy33]

Are you familiar with the Parable of the Broken Windows?

An interesting one.

 

[FireDragon76]

An interesting one.

Our economic theories don't account for externalities like that, but they clearly have an impact on the real economy of how people manage their lives.

 

[Laodicean60]

More money moving into the economy is a good thing,

Not necessarily ie Stimulus checks

"It took some time. When inflation was at its worst, in late 2021 and 2022, prices were rising too fast for workers’ pay to keep up. Over the course of 2023, however, the rate of inflation plummeted while wages kept rising. According to calculations by the economist Arindrajit Dube, prices rose about 20 percent from the beginning of the pandemic to the end of 2023—but the median worker’s hourly wages had increased by more than 26 percent. In other words, a dollar in 2024 might not go as far as a dollar in 2019, but today the average worker has so many more dollars that they can afford a higher quality of life."

Inflation was caused by stimulus checks which increased demand with a dysfunctional supply chain because of the actions taken during the pandemic.

 

[The Barbarian]

Are you familiar with the Parable of the Broken Windows?

My father was in Germany at the end of WWII. The day after the fighting stopped, the Germans began picking up, cleaning and rebuilding. It wasn't much, but it was the heart of the German economic recovery. Yes, it would have been better if the cities hadn't been destroyed and all that infrastructure gone. But the recovery began with the broken windows.