US economy bounces back strongly from pandemic behind fiscal stimulus and entrepreneurship
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The US has recovered strongly from the pandemic, with GDP growth exceeding other major economies and real wage growth unique among advanced economies.
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The government's massive fiscal support, totaling over $6 trillion, was crucial to the recovery and showed the power of using spending, not just monetary policy, to revive growth.
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Despite overheating concerns early on, inflation has fallen back to the Fed's 2% target without triggering a recession, defying common economic assumptions.
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The experience suggests fiscal policy and direct government spending should play a bigger role, versus just Fed rate cuts, in fighting future downturns.
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Factors like the American entrepreneurial spirit also helped power the recovery, with business applications soaring to new highs.