U.S. Economy: Collision of Disruptive Policies and Reality

Abstract

Proposed tax policies to repatriate offshore corporate profits will reduce pressure on the credit market and the cost of borrowing for business expansion. The combination of a tight labor market, a historically low capital formation, and stagnant labor productivity will increase the labor cost and limit supply-side expansion in the short to medium term. According to a survey commissioned by the National Institute on Retirement Security (NIRS), there is high anxiety among the elderly about their future. Board = Conference Board, New York, New York; Fannie Mae = Fannie Mae, Washington, D.C.; IHS = IHS Global Insight, Lexington, MA; GSU - EFC = Georgia State University, Economic Forecasting Center, Atlanta, Georgia; Moody's Economy = Moody's Economy.com, Westchester, Pennsylvania; Mortgage = Mortgage Bankers Association, Washington, D.C.; NAM = National Association of Manufacturers, Washington, D.C.; Perryman Gp = The Perryman Group, Waco, Texas; Royal Bank of Canada, Toronto, Ontario, Canada; S&P = Standard & Poor's, New York, New York; US Bank = U.S. Bank, Minneapolis, Minnesota; US Chamber = U.S. Chamber of Commerce, Washington, D.C.; Wells Fargo = Wells Fargo Bank, San Francisco, California.