Goal of SSEG

• What is the goal of Strong and Sustainable Economic Growth?

  To achieve the growth rate possible consistent with strong employment growth, but without running into unacceptable inflationary, external or environmental pressures.
• What is optimal sustainable REAL GDP growth?

  3-3.5%
• If Economic growth is too high?

  Environmental degradation

  External pressures

  rise in inflation to unacceptable rates
• If Economic growth is too low?

  High unemployment

  Pressures make it hard for gov to achieve goals
• Goal of Strong and Sustainable Economic Growth?

  To achieve a growth rate possible consistent with strong employment growth, without unacceptable inflationary, external or environmental pressures
• Optimal sustainable Real GDP growth?

  3-3.5%
• What if economic growth is Lower than 3-3.5%?

  Unemployment increases

  Decreased access to goods and services + Financial stress

  Material and non-material living standards decrease
• What if economic growth is higher than 3-3.5%?

  inflation pressures due to shortages; prices increase

  Environmental pressures; depleting resources + high pollution

  External Pressures.