by Curtis S. Dubay, Stephen Moore
The Heritage Foundation
February 06, 2014
The new Bureau of Economic Analysis report measuring how fast the economy grew in the fourth quarter of 2013 and for the entire year of 2013 confirms that while the U.S. economy has clearly picked up steam, it is still in the grip of a subpar recovery from the recession that ended in 2009. The cost of this slack-paced expansion—compared to past recoveries—has been $1.3 trillion in gross domestic product, according to the Joint Economic Committee. In other words, the U.S. economy would be generating about $1.3 trillion more if recent policy mistakes had not prevented an even average recovery. 2014 could be a year of breakout growth. American businesses are in strong financial shape on balance. And there is a small likelihood of Washington enacting any new anti-growth legislation this year, such as more stimulus spending and harmful tax increases.