Name a problem facing the U.S.—government debt, joblessness, rising racial tensions, broken politics, etc. Will any of these improve with sluggish 1% to 2% growth? No. Each will get worse with slow growth. America, therefore, needs urgently to return to 4% growth.
Is it possible? Of course. The U.S. economy has averaged 3.3% annual growth since the end of World War II. But this period also saw 11 recessions. Two of them (1973–74 and 2007–09) sank the country’s confidence to generational lows. Both dips left Americans worried that the good times would never return.
Here’s a fact that’s often missed: When the American economy is not in recession, 4% growth is the norm. This year, if the U.S. grew at 4% instead of the expected 2%, the country would add $600 billion more in economic activity. That would mean a lot of jobs, a lot of hopes restored.
It is a moral imperative to get the U.S. back to 4% growth. President Obama talks often about fairness, rarely about growth. He’s missing the big picture. His lapse could—should—cost him the election. Mitt Romney has a golden opportunity to talk about the stark differences between 2% and 4% growth. Let’s hope he grasps it. We already know where 2% will take us: mounting debts, high rates of joblessness, zero-sum thinking, political rancor, a sense of national decline.
How can the U.S. get back to 4% growth?
