Congressional Republicans promise their proposed tax plans will turbocharge the economy and complete its long recovery from the Great Recession. But in a little-noticed development, recent economic data indicated that the economy has actually, finally, reached its potential capacity. Potential GDP tells us, in rough terms, how big the economy can be. The return to potential GDP can be thought of as the true end of the long road back from the Great Recession. We can break the potential GDP barrier for a while, but think of those high growth rates like putting the pedal to the metal.

Source: Washington Post November 29, 2017 16:43 UTC