The economy looks like it is growing faster than expected in the last quarter of 2016. Gross Domestic Product improved to meet inflation at 3.2%, total grown improved to 3%, consumer spending increased to 2.8%, and after tax corporate profits bumped to 3.5%. To keep the American economy moving in the right direction during 2017 means making sure investments continue to rise with profits.
Investment and profits is a main reason why companies build new products, open plants and employ American workers. As recent data indicate that corporate profits are rising and this should encourage greater investments.
When companies realize higher profits, when compared to other countries, they will invest more in the American economy. Profits lead to higher investment and additional employment opportunities.
Of course greater employment also has a snowball effect that reduces poverty and crime while raising standards of living.
Improving the American economy means we should continue to encourage greater investment by finding efficiency that leads to higher corporate profits and additional employment. That requires adjusting how we connect our infrastructure to the needs of companies and the people who rely on that infrastructure.
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