We've been through a lot over the past decade:
- The Great Recession
- The slowest economic growth following a recession (1.8 percent) for eight years
- The longest period of time without at least 3 percent growth (12 years)
You get the idea.
The last full year for average U.S. economic growth (3 percent) was 2005 and 2007 for average wage growth. Not only is 2018 shaping up to be the year that the economy checks off those boxes, Goldman Sachs thinks that the economy could surprise on the upside (80 percent chance of 3 percent economic growth this year).
It makes sense.
Who saw 3 percent plus growth happening so soon prior to major reforms on healthcare and taxes? Who saw a chance of sustaining it after the hurricanes that negatively impacted our economy?
This past fall was the best time to make a case for a raise to your employer because the surprisingly good economy has brought record profits that should translate to the best raises in over a decade. We've seen that happen through a series of raises and bonuses being paid out in December (driven by the new tax cuts).
With consumer spending accounting for about 70 percent of the U.S. economy, that should translate into even more economic momentum when additional money kicks in.
In another story today, I've shown that the average person will have more than 7 percent additional income through raises, bonuses and tax cuts compared to a year ago. That's where the next leg in economic growth can and needs to come from if we're going to have a great 2018.
Companies reinvesting, increasing spending and ramping up hiring was the economic driver of 2017. You're the economic story of 2018 waiting to happen.