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"Heather Long of the Washington Post said yesterday there was only one word for the U.S. economy in 2023, and that word is “miracle.”
Group of Seven (G7)—a political and economic forum consisting of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, along with the European Union—with higher growth and faster drops in inflation than any other G7 country over the past three years.
Rather than cooling over the course of the year, growth accelerated to an astonishing 4.9% annualized rate in the third quarter of the year while inflation cooled from 6.4% to 3.1% and the economy added more than 2.5 million jobs. The S&P 500, which is a stock market index of 500 of the largest companies listed on U.S. stock exchanges, ended this year up 24%. The Nasdaq composite index, which focuses on technology stocks, gained more than 40%. Noah Berlatsky, writing for Public Notice yesterday, pointed out that new businesses are starting up at a near-record pace, and that holiday sales this year were up 3.1%.
Unemployment has remained below 4% for 22 months in a row for the first time since the late 1960s. That low unemployment has enabled labor to make significant gains, with unionized workers in the automobile industry, UPS, Hollywood, railroads, and service industries winning higher wages and other benefits. Real wages have risen faster than inflation, especially for those at the bottom of the economy, whose wages have risen by 4.5% after inflation between 2020 and 2023.
Meanwhile, perhaps as a reflection of better economic conditions in the wake of the pandemic, the nation has had a record drop in homicides and other categories of violent crime. The only crime that has risen in 2023 is vehicle theft." *
* HCR
