There is always the possibility that many of you will simply start laughing when you look at these next two graphs, but I'll take that risk.
Today I invite you to comment on these Congressional Budget Office graphs showing what is called potential GDP, which the St. Louis Fed defines as follows—
Real potential GDP is the CBO’s estimate of the output the economy would produce with a high rate of use of its capital and labor resources. The data is adjusted to remove the effects of inflation.
Direct your attention to the lower left panel. Graph from Tim Iacono's The CBO Forecast in Three Charts
From Brad Delong's The Long-run Cost of the Economic Downturn — Delong says "I have been staring at a very gloomy graph--at the Congressional Budget Office's forecasts of "potential output", of what the economy can produce without starting to "overheat" and putting upward pressure on inflation."
I am going to discuss "potential" GDP on Monday.
The floor is yours.
Have a nice weekend.