St. Louis, MO – A Washington University economist says the US is coming out of its mildest recession in decades. However, Murray Weidenbaum adds the greatest uncertainty facing the economy is the prospect of invading Iraq. Weidenbaum joined a panel of economists Thursday in St. Louis to offer their projections for the US economy in 2003.
He says most Americans have an outdated view of war that suggests new defense spending stimulates a sluggish economy. Instead, Weidenbaum says a modern war is waged with existing resources.
The panel predicts economic growth will remain around three percent next year, and that unemployment rates could slightly rise.