International Monetary Fund. Western Hemisphere Dept.
INTERNATIONAL MONETARY FUND
The U.S. is in its third longest expansion since 1850, job growth has been
persistently strong, inflation is subdued, and the economy is effectively at full
employment. However, like many other advanced economies, the U.S. is confronting
secular shifts on multiple fronts. These include technological change that is reshaping
labor and product markets, low productivity growth, rising skills premia, and an aging
population. Even with high per capita income and one of the most flexible, competitive,
and innovative economies in the world, the U.S. model appears to be having difficulties
adapting to these changes. Most critically, relative to historical performance, growth has
been too low and too unequal. The challenge for the U.S. administration is to realign
policies to raise productivity and labor force participation, reduce poverty and income
polarization, and help restore the economy's adaptability and dynamism.