Question

What is the U.S.A's actual rate of growth? (Website used) What was it in January 2020? According to the rule of 70, how fast would the U.S.A's  economy have doubled if it stayed at the January rate? At the current rate? What do you feel this will do to our economy? How would you try to help our economy?

Bullet points are fine if it helps you answer all 7 questions.

Answer 1

US current Gdp regrowth rate stands at - 5.91% as on September 2020, while January 2020 US witnessed 2.90% growth rate.

Using rule of 70, we find total years required for economic growth to double at 2.9%= 70/2.9= Approximately 24 years to double. At current rate we cannot predict as it is in negative territory.

Current rate will push the unemployment higher and fiscal deficit higher as government spending and taxcuts both rise. To curb the problem of unemployment several structural reforms are needed along with monetary stimulus from Federal reserve and need for automatic stabilizers. Through easing business norms and gradual reopening of economy and liberalisation the economic growth can be achieved and recession can be alleviated.

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