As America debates whether or not to invade Iraq, fears that the country's economic recovery will stall are beginning to creep into the discussion; with that, worries about the health of the global economy are growing, too. A consensus is emerging that the gap between the US economy's growth potential and its actual performance will remain large for some time to come. Can the situation get worse? Yes, it can: much worse.
As America debates whether or not to invade Iraq, fears that the country's economic recovery will stall are beginning to creep into the discussion; with that, worries about the health of the global economy are growing, too. A consensus is emerging that the gap between the US economy's growth potential and its actual performance will remain large for some time to come. Can the situation get worse? Yes, it can: much worse.