America's Economic Crossroads - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Economic News
Newswires RSS Get our newsletter
Order Prints
April 8, 2025 Newswires
Share
Share
Post
Email

America's Economic Crossroads

James PethokoukisThe American

America's inopportune experimentation with bonkers macroeconomic policy threatens to undermine its AI-powered technological future. Aside from a reckless tariff policy, there's also been talk of a third presidential term, price control threats, and attacks on independent agencies—all of which suggest multiple pillars of the successful US economic model face challenges: global trade, constitutional governance, market efficiency, and financial stability. The contrast with the economic renaissance of the 1990s, when sound and certain fiscal and monetary policy complemented technological innovation and entrepreneurial spirit, reveals what's at stake if we continue down this perilous and totally unnecessary path.

The state of play, aside from stock market turmoil: The economics team at megabank JPMorgan now expects the US economy to fall into a recession this year due to the impact of tariffs announced by the Trump administration. Goldman Sachs economists raised their recession probability to 45 percent from 35 percent and lowered their 2025 Q4-to-Q4 GDP growth forecast to 0.5 percent from one percent, adding that if "most of the April 9 tariffs do take effect . . . we expect to change our forecast to a recession." And in a Bloomberg column, Bill Dudley, former New York Fed president, writes that "stagflation is the optimistic scenario. More likely, the US will end up in a full-blown recession accompanied by higher inflation."

Look, technological progress—even when considering something that seems as promising as generative artificial intelligence—doesn't exist in a vacuum. The 1990s provide an instructive parallel. That decade began with recession and pessimism but eventually boomed thanks to a tech revolution driven by America's entrepreneurial prowess that, importantly, Washington decided not to stifle through regulation.

But the 1990s boom wasn't solely about deregulation and technology. Fiscal discipline helped transform deficits into surpluses, allowing lower interest rates. This fiscal-monetary harmony created ideal conditions for investment, anchoring inflation expectations and policy certainty while reducing borrowing costs.

(As an aside, we don't need tariff revenue to get our fiscal house in order. My AEI colleagues offer a plan reducing projected public debt from 166 percent to 85 percent of GDP by 2054 through major, evidence-driven reforms. The proposal would, among other things, a) convert Medicare to premium-support with higher eligibility ages, b) transform Social Security into a means-tested program, c) simplify tax brackets while eliminating deductions, d) introduce a carbon tax, and e) implement capital gains tax at death. The plan requires difficult choices, sure, but promises fiscal stability without abandoning vulnerable populations or throttling growth. (And if we also get a growth boost from AI, so much the better.)

The emerging AI Revolution similarly requires more than technological breakthroughs if it is to arrive ASAP. Without sound monetary policy, fiscal restraint, regulatory predictability, and respect for institutions, America's technological potential faces unnecessary headwinds.

Learn more: When the GOP Supply-Siders Hated Tariffs and Trusted the Stock Market | Is America Passing the Kahn Test? | America's R&D Rethink Threatens Its Innovation Supremacy | America's Electric Future Requires Washington's Attention Today

The post America's Economic Crossroads appeared first on American Enterprise Institute - AEI.

Older

CEO pay rises as health care nonprofits falter

Newer

Moraine Park Foundation Board welcomes new members

Advisor News

  • Poor money habits are a dealbreaker in a new relationship
  • DC plan sponsors see opportunity in alternatives
  • The American Dream: Redefined as financial stability
  • Partial annuitization: How advisors can help clients balance income, growth
  • Guide women along the walk through widowhood
More Advisor News

Annuity News

  • Globe Life Inc. (NYSE: GL) Records 52-Week High Thursday Morning
  • AM Best Managing Director Joins ‘Target Topics’ Podcast to Discuss State of Delegated Underwriting Authority Enterprises Market
  • KBRA Assigns Rating to TruSpire Retirement Insurance Company
  • Partial annuitization: How advisors can help clients balance income, growth
  • Guide women along the walk through widowhood
More Annuity News

Health/Employee Benefits News

  • Fewer members, more profit: UnitedHealth shares surge on Q2 earnings beat
  • ARE SURVIVAL RATES FOR ADULTS WITH CONGENITAL HEART DISEASE LINKED TO SPECIALIZED CARDIAC CARE ACCESS?
  • THIRTY-TWO YEARS, ZERO RESULTS: NRSC CHARGES SHERROD BROWN SOLD OUT TO BIG INSURANCE
  • Employers weigh retention, costs in developing benefits strategies
  • As beer strike continues, community stands behind workers
More Health/Employee Benefits News

Life Insurance News

  • Globe Life Inc. (NYSE: GL) Records 52-Week High Thursday Morning
  • AM Best Upgrades Credit Ratings of Sagicor Financial Company Ltd. and Most of Its Subsidiaries
  • Trust, technology and the future of claims
  • New York Life Launches an Indemnity Benefit for its Asset Flex Long-Term Care Insurance Solution
  • AM Best Affirms Credit Ratings of DB Insurance Co., Ltd.
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Prosperity Life GroupSM Launches Prosperity PathWaySM Series, Bringing Greater Choice and Flexibility to Retirement Income Planning
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
  • RFP #T01625
  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet