Economic expansion has become the norm in the minds of most Americans due, in no small part, to the fact that since the early 1980s recessions have been relatively rare, says the American Enterprise Institute.
Stimulated by tax cuts and interest rates cuts, the economy has managed to grow by a 3.5 percent annual rate over the past two-and-a-half years. The economy, however, is faced with a number of obstacles to continued expansion:
Additionally, the Federal Reserve has raised short-term interest rates over the past few months, which some analysts say will slow economic growth.
Source: John H. Makin, The Recovery: Three Years On, American Enterprise Institute, October 2004.
For text http://www.aei.org/docLib/20040922_Econ.OutlookCCG.pdf
For more on Economic Growthhttp://www.ncpa.org/iss/eco/
FMF Policy Bulletin/ 23 November 2004
