Date of Completion
In 2001, the so-called “New Economy” had emerged as a part of an unprecedented period economic demand-side growth. This temporarily raised Americans’ real wages to record-highs, decreased unemployment to 4.9% (at the time, an all-time low) and created opportunities for groups that had long been left behind, such as ethnic minorities. The name “New Economy” described its new structure and nature, being more high technology-intensive than ever before while yielding higher productivity growth rates than in previous years. The “New Economy” was allowed to arise due to the macroeconomic policies of the prior eight years. This consisted of fiscal and monetary policies as well as government investment in technology and education. While appearing as a flourishing economy, the “New Economy” implied a great deal of issues as well, such as an increase in income inequality between whites and ethnic minority groups, an increase in urban sprawl, and the creation of the conditions for a devastating economic crash due to an overinvestment in risky businesses.
Lewke, Caspian R., "New Year, New Economy: The 2001 Economic Report of the President" (2017). Honors Thesis. 153.