What politicians won’t tell you – Economic recovery is a marathon, not a sprint
Brace yourself for the long haul.
There are three ways to kickstart the economy.
1. Consumer spending led growth
2. Government spending led growth
3. Export led growth.
1. Consumers are no longer confident nor able to spend as they did Pre Covid. We are entering a new decade due to unemployment and damaged balance sheets. America could still be at 9% unemployment by end 2021
2. Governments are notoriously bad at creating efficient infrastructure led project spending. Also sovereign debt has ballooned while the tax base has shrunk at both the individual and corporate levels.
3. The global economy is suffering the same economic problem at the same time. There is no salvation here. In fact exports in most countries will decline until global spending increases.
If there is no silver-bullet then the only answer is a long hard slog and reset to work and save our way back. Welcome to the Long March.