What the U.S. economic boom depends on
Investment bank JPMorgan made a forecast for the U.S. development in the current year. According to the document, the country is waiting for a real economic boom, which will last until 2023. However, this scenario is possible only in case the vaccination program will continue and the government will not stop measures to stimulate the market.
According to the head of JPMorgan, people are saving more and spending less. Combined with the current monetary policy and allocation of funds to stimulate the economy, we can expect excellent prospects for the country’s development. Furthermore, market sentiment is optimistic due to ongoing vaccinations, which are being carried out without delay and according to a planned program.
Analysts do not exclude that the intensive growth can continue in 2023, as there are indications that the government will continue to stimulate the market.
As for the consumer finances, JPMorgan gave them a positive assessment, which explains the high level of quotes on the stock market. However, it should be understood that the price of U.S. government bonds is still low.
The economic growth that awaits the country in the coming years will solve a number of problems that have arisen during the pandemic and the recovery from the crisis. First of all, it concerns issues of inequality, which in 2020 caused a wave of protests and significantly shook the U.S. economy and the stability of the dollar.
JPMorgan also presented recommendations that would improve market development. One of them is to increase the minimum wage at the federal level. In addition, it is necessary to pay attention to the level of education in schools and colleges, and to review the terms of employment of people who have a criminal record. Now it is almost unrealistic to find affordable jobs for such citizens.
According to the head of JPMorgan, the best solution in this situation would be to increase the amount of taxes to pay for government incentives. At the same time, he called on the government to introduce strict budgeting rules and make spending more transparent.
JPMorgan noted that they should move towards social protection of citizens who can’t defend their rights and freedoms by themselves. At that, success in this direction will be only when the concepts of individualism in business will be reconsidered. The latter requires a number of sacrifices from corporations, to which not all entrepreneurs agree.
The year 2020 was a real test for the dollar and the American economy as a whole. However, no matter what, the government managed to withstand it. Now the authorities need to work on strengthening the weaknesses of the system to prevent similar crises.
