Lost Decades

Lousy Economic Outlook for 2010s

Perhaps we shouldn't be celebrating the end of the Aughties: According to economists, the 2010s may not be much better. At the American Economic Association’s annual gathering, economic experts offered a bleak outlook for the new decade, with many predicting that the GDP would grow less than two percent per year for the next 10 years. "It will be difficult to have a robust recovery while housing and commercial real estate are depressed," said Martin Feldstein, a Harvard University professor. "It's going to take a number of years,” said Nobel-prize winner Joseph Stiglitz. Another Nobel winner, Paul Krugman, warns in the New York Times that the housing boom and consumer-spending surge that fueled the pre-crisis economy are not coming back. "The odds are that any good economic news you hear in the near future will be a blip, not an indication that we're on our way to sustained recovery," writes Krugman.