Disappointing Growth Shows Diminishing Return of Stimulus

Disappointing Growth Shows Diminishing Return of Stimulus
Customers shop for produce at a supermarket in Chicago on June 10, 2021. Scott Olson/Getty Images
Daniel Lacalle
Updated:
Commentary
The U.S. economy recovered at a 6.5 percent annualized rate in the second quarter of 2021, and gross domestic product (GDP) is now above the pre-pandemic level. This should be viewed as good news—until we put it in the context of the largest fiscal and monetary stimulus in recent history.
Daniel Lacalle
Daniel Lacalle
Author
Daniel Lacalle, Ph.D., is chief economist at hedge fund Tressis and author of the bestselling books “Freedom or Equality” (2020), “Escape from the Central Bank Trap” (2017), “The Energy World Is Flat”​ (2015), and “Life in the Financial Markets.”
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