I recently came across a notable excerpt in ECRI’s “U.S. Cyclical Outlook” of December 2009 (pdf):
“The bottom line is that long expansions are needed after severe recessions to undo the damage. After the 1932-33 depression, not even four years of expansion were quite enough, despite 10% annual GNP growth. This time trend growth is likely to be far lower, and the danger of frequent recessions accordingly higher.”
I find the above excerpt interesting and notable. While I don’t necessarily agree with ECRI’s current forecast or economic interpretations, the concept of Sustainable Prosperity is one that I have frequently written of, and it is imperative that we, as a nation, should consider our longer-term economic plight as we seek to improve our current economic condition.