United States

Fiscal stimulus takes its turn in the spotlight

Tax reform, infrastructure create big opportunities for middle market

THE REAL ECONOMY  | 

Download The Real Economy Vol. 24

2017 will likely be remembered as a year of transition when the U.S. government attempted to achieve a strategic breakout from a long period of secular stagflation; low growth, low inflation and low interest rates. The path to this potential breakout will be fiscal stimulus characterized by the largest tax cuts since the Ronald Reagan era and the largest infrastructure spending project since the middle of the 20th century. The extent to which this transition to fiscal policy works will mean the difference between slow growth and budget-busting deficits or a return to a sustained long-term pace of economic growth near 3 percent, rising productivity and living standards.

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