America Just Became the Slow Lane: Why the US Is Growing Slower Than Europe and Mexico — and Why the Usual Fixes Won't Work
US economic growth slowed to a 1.5% annual rate in the second quarter, missing forecasts — and here's the part that should get your attention: the eurozone and Mexico, facing the same war-driven energy pressures, both beat expectations. When everyone is dealing with the same storm and you're the only one slowing down, the problem isn't just the storm. And because this is a supply shock, not a demand slump, the standard playbook for fixing it doesn't apply.
Bottom Line
THE BOTTOM LINE: The US didn't just slow down — it slowed down while its peers sped up, and that relative underperformance points to causes beyond the war alone. Because this is a supply shock, the tools that normally end slowdowns are partially disarmed. The debate over how much of this is tariff policy versus oil prices will be fierce, but the practical reality for households is the same: slower growth, sticky prices, and no easy lever to pull. This is a trend to track, not a one-quarter blip to dismiss — the trajectory of the US-Iran conflict will heavily shape whether Q3 looks better or worse.