The editors of The 4% Growth Project asked Bush Institute Growth Fellow Ike Brannon to look into 10 things that would happen if the U.S....
The editors of The 4% Growth Project asked Bush Institute Growth Fellow Ike Brannon to look into 10 things that would happen if the U.S. economy grew at 4% each year in real terms for 10 years. We will unveil one growth fact each week. Growth Fact #10 of 10: If the economy grew at 4% per year, U.S. households would be able to buy an extra $8 trillion worth of goods and services in the next decade.[i] This amounts to over $70,000 per household, or the equivalent of a year’s income for the median household.
[i] Consumption constitutes roughly two-thirds of GDP in most years, a remarkably stable percentage. Two-thirds of the added GDP resulting from the difference between 3% and 4% growth amounts to approximately $8 trillion from 2013-2022 (note the significant compounding effects when the economy grows consistently at 4%).
