The US economy grew at a slower pace than expected in the first quarter, but given the amount of stimulus money injected into the system, it could be worse. Inflation is the biggest problem facing the economy right now, which is a direct result of the government’s COVID-related spending. The stimulus package might have provided a temporary boost, but the long-term cost will come in the form of higher taxes and slower economic growth. Rising interest rates are necessary to tackle inflation, but they are also a significant factor in the slower GDP growth. Despite the challenges, the labor market remains robust, and growth is still positive.
During covid, America’s GDP hit its lowest in recent history, now we’re finally moving back in the right direction, but is it enough? For more information, Lars speaks with Ryan Young, a Senior Fellow with the Competitive Enterprise Institute (CEI).