a chaotic new era
America Is Entering A New 'Economic Supercycle'
The US economy is entering a bold new era that economists say will feature more inflation, more growth and more chaos.
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The Lede
No one's going to sound an alarm, blast out a text message, or shoot you an email about it, but the US economy is undergoing a historic shift. We are leaving one long period of expansion — what economists refer to as a "supercycle" — and entering a very different one. Over the past 15 years, the economy has been characterized by weak demand and low interest rates — a decade-and-a-half hangover from the Great Recession. Now, experts say, that is coming to an end.
Key Details
- This supercycle will be characterized by three sweeping forces: higher interest rates will reward savers, geopolitical and economic volatility will generate inflationary effects, and industrial planning will be influenced by national-security concerns.
- One of the clearest signs that a new supercycle has arrived is when the financial rules go topsy-turvy.
- Higher interest rates failed to spur widespread layoffs or crater the economy. Unemployment has stayed below 4.3% and GDP growth has remained solid.
