Biden’s $US7 trillion punt on US growth and economic supremacy



Stephen Bartholomeusz | The Sydney Morning Herald

For the first time in two decades the US economy seems likely to grow faster and contribute more to global growth this year than China’s. Whether that’s a good thing is in the eye of the beholder.

Since 2000 China has been the major contributor to global growth. That position was enhanced by its response to the 2008 financial crisis, when its massive stimulus programs powered its growth rate even as other large economies floundered and then stagnated.

It has emerged from the pandemic with an economy less damaged and recovering faster than any other major economy. While its GDP growth of 2.3 per cent last year was its lowest for 45 years it was still the only large economy to record positive growth. The US economy shrank 3.5 per cent in 2020 and the European Union’s 6.2 per cent.

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