A "New Normal"? The Prospects for Long-Term Growth in the United States

Economic growth in the United States following the Great Recession has been well below the post-World War II average. Some observers have called this the "new normal." They argue, among other things, that innovation has slowed and is unlikely to improve and that demographic trends pose seri­ous problems for fiscal policy that will hinder the economy. Such issues are significant, but the "new normal" is not a given. Continued innovation, as well as good policy, could yield improvements in economic performance.