US High School Economics class: US economy is heading for soft landing, FT survey says

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Click to read the article below and then answer the questions:

US economy is heading for soft landing, FT survey says

Discussion Questions

• What is the projected GDP growth for the US in 2024 and 2025, according to the survey?

• How is the unemployment rate expected to change by the end of this year, and how does it compare to the current rate?

• What does a ‘soft landing’ in an economy refer to, and how does this article suggest the US is achieving it?

• What actions is the Federal Reserve expected to take next, and why is this important for the economy?

• How do the economic platforms — potential future fiscal policies and trade policies — of Donald Trump and Kamala Harris differ, according to the article?

Extended Learning

Watch the video: “Why Soft Landings Are Basically Economic Nirvana” (4:48)

• What are the risks of relying on the Federal Reserve’s interest rate policies to achieve a “soft landing,” considering that economies are always moving?

• Why might some economists argue that attempting to “control” the economy through interest rate adjustments is like trying to land a plane in turbulent conditions?

• Given the complexity of global factors like energy prices and consumer behaviour, how much influence do policymakers have in ensuring a stable economic outcome?

• How might the analogy of an aeroplane “landing” overlook the reality that economic conditions, like inflation and unemployment, are always subject to change and can’t be perfectly controlled?

Conclusion

In light of the discussion around soft landings, market dynamics and the role of policy, do you think long-term economic stability is better achieved through government intervention, like the Federal Reserve’s interest rate policies, or by allowing market forces and individual decisions to guide the economy? Why?

Joel Miller and James Redelsheimer, Foundation for Economic Education.
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