Follow U.S. Investment Immigration and follow U.S. Economy: Jason Furman, Chairman of the Council of Economic Advisers at the White House, said on the 17th that after the economy stabilizes and recovers, future U.S. economic policy will focus on three areas: continuing to promote recovery, increasing the level of potential growth, and alleviating the wealth gap.
In a speech at the Council on Foreign Relations, an important U.S. think tank, Furman said that to better understand the challenges facing the U.S. economy and where it is headed, one needs to open three "windows": First, the past 60 years. During this period, the growth rate of U.S. productivity has declined. Before 1973, the total factor productivity of the United States grew at an annual rate of 2.2%, which later dropped to 0.7%, the social wealth gap widened, and the middle class received fewer benefits.
Second, the past six years. The U.S. economy fell into recession in December 2007. To cope with the crisis, the United States adopted a series of policies, including quantitative easing monetary policy, fiscal policy, and financial assistance. So far, the U.S. gross domestic product has recovered to pre-crisis levels, but GDP per household is still below pre-crisis levels.
Third, the past 6 months. Despite various challenges such as fiscal gridlock, the U.S. economy has performed well during this period. Among them, the average annual growth rate of U.S. GDP was 3%, the unemployment rate fell by 0.6 percentage points, and 1.1 million jobs were added in the non-farm sector, but the high level of long-term unemployment remains a major challenge facing the U.S. economy.
Furman said that future U.S. economic policy will focus on three areas: First, continue to promote economic recovery and reduce short-term and long-term unemployment rates. Although the inhibitory effect of fiscal issues on the economy will be reduced next year, it is expected that 1.3 million people may lose their unemployment benefits next year, which not only concerns the welfare of this part of the unemployed population but also affects social purchasing power and employment.
Second, increase the potential growth level of the U.S. economy, including promoting reforms in immigration, patents, education, and taxation, and advancing trade negotiations with Asia and Europe.
Third, alleviate the wealth gap. Although the U.S. economy has recovered, the income of a typical American family is currently lower than the 1997 level. In the future, it is necessary to ensure that the fruits of economic growth are shared by the whole society, which includes increasing investment in infrastructure, improving preschool education, and raising the minimum wage level.
Furman said that from the current situation, he is "not very optimistic" about the U.S. economy. However, he believes that given that there is no urgent fiscal drag in the United States at the moment, and real estate investment and consumer spending are continuing, its economic growth rate is expected to accelerate.
In response to reporters' questions, Furman said that China is the world's second-largest economy, a major export destination for U.S. products, and an important economic partner of the United States. The two countries have many common interests, and he hopes that both sides will continue to work together to further improve bilateral economic and trade relations.
The Council of Economic Advisers and the National Economic Council are the two main economic advisory bodies to the U.S. President. The Chairman of the Council of Economic Advisers is a cabinet member, and Furman was nominated for this important position by U.S. President Obama in June this year.
