An economy’s potential depends on its resources, and the US economy’s most vital resource is its people. The economy continues to expand, but it is hindered because growth in its aggregate supply has not kept up with growth in its aggregate demand. Record increases in income propelled the economy through the second quarter. But the economy’s growth has been limited because many people fearing COVID have chosen not to return to work. Shipping problems have also constrained aggregate supply. Inflation is the consequence when an economy’s aggregate demand increases at a faster clip than its aggregate supply. To learn more about the US economy’s progress and where it is heading, access the government reports here and read our summary of vital statistics and analysis. More

The US economy is booming. Service industries, such as restaurants, have benefitted the most from the rebound. But businesses have had trouble hiring. Many of their former employees have found new jobs or remain reluctant to return to work. Companies are offering incentives to attract new employees. They also must train them. Cost increases and a pent-up demand have pushed prices higher. Will the boom continue? Will it result in prolonged inflation? To learn more about the US economy’s progress and where it is heading, access the government reports here and read our summary of vital statistics and analysis. More

The US economy continues to rebound from the 2020 recession, but there are some growing pains. Economic growth accelerated in the first quarter, and prosperity is likely to continue into the second. Household income has increased, primarily because of massive transfer payments from the federal government fueled consumer spending. Learn more by reviewing the Bureau of Economic Analysis reports on RGDP and Personal Income and Outlays, and the Bureau of Labor Statistics reports on inflation and unemployment. More

Is the economy growing too fast? Will inflation become a problem? Many economists are concerned President Biden’s $1.9 trillion stimulus package, and $2.0 trillion infrastructure proposal are too aggressive because they will cause a harmful increase in the price level. The International Monetary Fund recently upgraded its 2021 economic growth projection for the US economy to 6.4%, which would be the most since 1984. If shortages develop, inflation would likely result. To learn more about the US economy’s progress and where it is heading, read our summary of vital statistics and analysis. More