“Economic growth will speed up this year to the 2.25-2.75 percent range, but the business expansion is endangered by a dysfunctional and divided Congress, says Pimco CEO Mohamed El-Erian.
“The American economy will improve in 2014, creating more jobs and boosting wages. That is the good news,” El-Erian writes on Politico.
“The bad news is that, rather than serve as a springboard for even better performance down the road, this improvement could lull Congress into a false sense of security and continued inaction on key economic legislation,” he says.
And what would that mean for the economy?
“Should this occur, the multi-year outcome could be an even longer (as well as unnecessary) period of below-potential national prosperity, excessive income and wealth inequalities and greater political polarization,” El-Erian writes….”
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