US presidential nominees shouldn’t use growth plans to win votes
After former Florida governor Jeb Bush said last month that he would make achieving 4 percent economic growth his top goal if elected US president, Democratic presidential front-runnerHillary Rodham Clinton said onMonday that she would build a “growth and fairness economy” if elected to the WhiteHouse.
The two presidential candidates should be applauded for trying to re-ignite the world’s largest economy. But taking concrete steps to boost the growth of the real economy is easier said than done.
At a time when the world economy is yet to step out of the long shadow cast by the 2008 global financial crisis, it is reassuring to see economic growth taking central stage at the start of the campaign for the 2016 presidential election.
Instead of serving as a powerful growth engine, the US economy contracted at the start of 2015, dragging down global economic growth to 2.2 percent, the lowest since the Great Recession of the last decade, according to theWorld Economic Outlook released by the International Monetary Fund last week. The IMF has now cut its forecast for this year’s global growth to 3.3 percent, down from the 3.5 percent it projected in April. That would be the slowest pace of global growth since the world economy shrank slightly in the recession year 2009. Worse, the ongoing Greek debt crisis and the recent Chinese stock market crash leave little room for optimism over better global growth.
Given the difficulties in sustaining the fragile global recovery, however, Chinese policymakers have made clear their intention to boost domestic growth as much as possible.
With its economy worth just more than $10 trillion, China contributes about 30 percent to global economic growth, while the $17-trillion US economy’s share is only about 10 percent. If the US takes on more