1987:A Year in Question; Strong Crosscurrents Sweep U.S. Economy

From: The Washington Post | Date: January 11, 1987| Author: | Copyright information

Strong crosscurrents are sweeping through the American economy this winter, leaving the outlook for 1987 as murky as the Misssouri River in early spring. At the moment, there are more questions than answers.

Did some of the massive changes in U.S. tax law provide a temporary boost to the economy in the fourth quarter of 1986 that will be repaid with very weak growth in the first half of this year?

Will consumers, who have been the driving force in this four-year-old expansion, continue to increase their spending despite a record load of debt and a savings rate that is the lowest in decades?

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