Why the US economy is still the envy of the world
The Indicator from Planet Money
NPR
4.7 • 9.5K Ratings
🗓️ 14 December 2024
⏱️ 18 minutes
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| 0:00.0 | NPR. Hey there. It's Adrian Ma. So by now we all know that Donald Trump's victory in the presidential election last month was driven in large part by the fact that a lot of voters were just not |
| 0:21.4 | happy about the economy the past couple of years. They were feeling the sting of inflation. |
| 0:26.7 | And yet there is a sort of disconnect here because there are some pretty strong economic |
| 0:32.1 | metrics that show that the economy the past couple years has been doing pretty well, |
| 0:35.8 | from cooling inflation to rising |
| 0:38.9 | wages to low unemployment and strong consumer spending. And when you put all this together, |
| 0:45.8 | it's actually not an exaggeration to say that the U.S. economy is the envy of the world right now. |
| 0:51.5 | And in fact, that is the title of a special report in the economists recently, titled |
| 0:56.1 | The Envy of the World. It was co-authored by Simon Rabinovich. So the U.S. has effectively |
| 1:01.9 | grown three times as fast as its kind of largest comparable economic block. That block he's |
| 1:09.2 | talking about is the G7 group of rich countries. |
| 1:12.9 | Places like the UK, Japan, and Germany. |
| 1:16.3 | If you take the economies of all the G7 countries and put them in a pie, |
| 1:20.5 | he says the U.S. used to be about 40% of that pie. |
| 1:24.2 | That was back in the 1990s. |
| 1:26.2 | Today, it's grown. It's more than 50% today. |
| 1:31.9 | So you look at all of these different basic top line GDP economic output metrics, and |
| 1:39.1 | American outperformance is really quite striking. |
| 1:51.1 | The big question now, though, is whether that outperformance will continue under a president who's promising some major economic changes. |
| 1:53.9 | And that is what we're talking about with Simon and Rabinovich today. |
| 1:57.7 | Now, if Simon's name rings a bell, it's because we actually had him on the show just after the election. |
| 2:02.8 | Today's episode is an extended cut of that chat. |
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