The US is well on its way toward achieving that outcome.
Profits from current production rose 0.5 percent (not annualized) in the first quarter following a 17.9 percent increase in the fourth, according to the Commerce Department. The increase was smaller than expected and owed to the fact that foreign companies increased their earnings from US operations, which are subtracted from the total since foreign businesses aren't US residents, according to the Commerce Department.
As to the growth envy from one country to the next, give it up. A rising tide lifts all boats. An expanding economy eventually lifts all sectors.
It's a mistake to expect the previous cycle's pattern of growth to repeat itself this time around.
"Growth always changes," says Joe Carson, an economist at Alliance Capital Management, sounding a bit like Chauncey Gardiner. "Policy changes. This time we're getting more from government and investment tied to government. It's an old-style recovery in a new economy."
RSS