Economic exceptionalism in America is facing scrutiny as growth forecasts decline. Post-2008, the U.S. enjoyed superior GDP growth compared to Europe and Japan, fueling investment in American equities. This growth cycle benefited households, boosting corporate revenues. However, current economic policies threaten the structural foundations that sustained this exceptionalism, with shifts in labor dynamics and productivity. Immigrant contributions to the workforce have been crucial, yet an aging population poses risks for future growth and economic security, indicating that many Americans may face tougher financial situations ahead.
Since the 2008 financial crisis abated, America's economy has been the envy of the developed world. Annual average real growth in gross domestic product has been twice that of Europe and Britain and more than four times that of Japan.
Some key structural underpinnings of that economic exceptionalism are now at risk from policies being pursued by President Trump and the responses of our overseas allies and adversaries.
Simply put, G.D.P. is a function of labor and productivity – the number of workers in a country and the output created by each unit of labor.
The nation's no longer being economically exceptional could bring household budget challenges and difficult retirement years ahead for millions of Americans.
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