(p. R3) Starting in 1983, when Ronald Reagan was in the middle of his first presidential term, the American economy reeled off three straight years of 4% growth. The economy went on to hit that politically important target in nine of the next 17 years. In fact, even as Mr. Bush ran for re-election, the economy actually was revving up after a two-year lull, though the surge came too late for voters to realize it.
Then, at the turn into a new millennium, that streak stopped. In the last 15 years, the American economy hasn’t grown at a 4% annual rate even once.
But it isn’t just the U.S. In the last 15 years, according to International Monetary Fund data, exactly one of the traditional seven major industrialized nations achieved annual economic growth of 4%, one time: Japan in 2010.
In sum, the kind of economic growth that used to be relatively routine in the industrialized world has become virtually extinct.
This low-growth era leaves political leaders facing two unsavory tasks. The first is to explain to unhappy voters why growth is so anemic, and the second is to convince them that they know what to do about it.
For the full commentary, see:
Gerald F. Seib. “Politicians Pine for Elusive Solution to Voters’ Discontent: 4% Growth.” The Wall Street Journal (Tues., Jan. 17, 2017): R3.
(Note: the online version of the commentary has the date Jan. 16, 2017.)