Beware the Dark Side of the Boom

House Speaker Nancy Pelosi speaks during a news conference on the day the House of Representatives is expected to vote on legislation to provide $1.9 trillion in new coronavirus relief at the U.S. Capitol, February 26, 2021. (Carlos Barria/Reuters)
Democrats want to spend the country into a roaring economy. They should be careful what they wish for.

NRPLUS MEMBER ARTICLE M aybe a boom is not what we need.

The economic forecasters are expecting a big 2021, and have been revising their growth forecasts upward in anticipation of another $1.9 trillion in stimulus spending.

How big a boom? Goldman Sachs estimated 6.6 percent GDP growth back in January, and more recent estimates from other firms have run as high as 9 to 10 percent. (For comparison, consider that in the postwar era the United States has never seen a year of 9 percent GDP growth.) The more conservative forecast survey published by the Federal Reserve Bank of Philadelphia foresees GDP growth at 4.5

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