The secret of America’s economic success

WHEN Covid-19 struck, the initial economic impact was devastating. Large parts of major economies shut down, both because of official lockdowns and because people feared that in-person interaction would expose them to infection. In the US, 20 million jobs suddenly disappeared.

At the time, there was widespread concern that the pandemic would leave lasting economic scars. After all, the 2008 financial crisis was followed by a weak recovery that left real gross domestic product in many countries far below the pre-crisis trend even a decade later.

Indeed, as we approach Covid’s four-year mark, many of the world’s economies remain well short of full recovery.