This week’s issue of Newsweek suggests hubris of a premature recovery in the U.S. economy. Recoveries don’t happen overnight, which in this case means less than two years. More likely America’s true economic rebound is likely to take shape over the course of a few years, at least. And there’s no guarantee that this economic recovery as told by Newsweek will be sustainable.
American thinking will likely remain the same, that McMansions will continue to be built and investment will simply shift into another asset that will soon be overvalued as part of get-rich-quick scheme. Attitudes of spending less and saving more should be preached, even as the Federal Reserve continuing to print money and keeping interest rates low.
But consumers are likely to maintain the psychological view that the attainment of material goods still matters and will spend, which might be good for the economy in the short term but necessarily for the long term.
Tags: Economy us recovery