Blessing/Curse of a Strong US Economy

An analysis by figures from the Boston Consulting Group reviews facets of today’s perplexing economy, and weighs both the up- and down-side of the unusual economic conditions America faces.

On the Harvard Business Review, several authors from the Boston Consulting Group offered their thoughts on the current American economic condition, and its many confusing indicators of strength. While a strong economy seems to obviously carry benefits, the authors lay out the policy downside as well.

From the article:

With GDP contracting in the first half of the year and a cratering stock market, it may seem surprising to describe the U.S. economy as “strong.” While the haze of macroeconomic data is exceptionally contradictory, the evidence of a strong economy is difficult to ignore.

The current reality of the U.S. economy is that highly profitable firms are employing a record number of workers and paying them rising wages. A sudden stop to this picture is less plausible, although not impossible (remember the exogenous shock of Covid and the pandemic freeze), although a slowing in job creation is inevitable. The questions are how fast and to what extent the economy loses its strength and why.

The discussion of the perplexing economy echoes themes raised in recent episodes of the MACo Conduit Street Podcast, where our hosts discussed the moving parts beneath confusing economic signals and strong public sector revenues.

Tune in, in case you missed this relevant discussion, embedded in the tweet below:

Michael Sanderson

Executive Director Maryland Association of Counties