Beside a lack of competition, the investment slump stems from what Summers calls the de-massification of the economy. Tax cuts that benefit the wealthy most are huge and permanent. Tax cuts focused on everyone else are smaller and temporary. But the law still pumped money into the economy last year, thanks largely to those temporary tax cuts for the middle class and poor. And a Federal Reserve that, at long last, stopped making the same mistake — of overestimating both growth and inflation.

Source: New York Times March 10, 2019 23:15 UTC