Goldman Sachs is predicting the economy will grow at an 8 percent rate this year in a note sent to clients on Sunday, Axios reported.
Economists at the company informed clients that they were increasing their forecast for growth, which if it happened, would be the largest economic improvement in decades.
“We have raised our GDP forecast to reflect the latest fiscal policy news and now expect 8% growth in 2021 (Q4/Q4) and an unemployment rate of 4% at end-2021 — the lowest among consensus forecasts—that falls to 3.5% in 2022 and 3.2% in 2023,” Goldman said in the distributed note obtained by Axios.
Read more at The Hill.
{Matzav.com}
If the virus comes to a halt, or a near halt, the economy will have an automatic rebound without Biden doing anything. However, Matzav reported today that Biden is planning massive tax hikes, hence while there should be an automatic economic rebound if the virus slows down, and hopefully ends, Biden’s tax hikes will be a burden on the economy. The 8 percent rate growth rate prediction was made before Biden announced his tax hikes. We need to see what kind of impact the tax hikes will have on the economy. It should be noted that if the economy improves despite Biden’s tax hikes, the tax hiking Liberals will use that as proof that tax hikes do not stifle economic growth. But truth be told, a slow down and halt of the virus would facilitate an automatic economic improvement even in the face of tax hikes. The only question is how much less of an improvement there will be with the tax hikes set in motion, and for how long the improvement will last before the tax hikes brings the economy to a standstill, and puts the economy in reverse.