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We Are In A Low Growth World

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http://www.nytimes.com/2016/08/07/upshot/were-in-a-low-growth-world-how-did-we-get-here.html?ref=business&_r=0

One central fact about the global economy lurks just beneath the year’s remarkable headlines: Economic growth in advanced nations has been weaker for longer than it has been in the lifetime of most people on earth.

The United States is adding jobs at a healthy clip, as a new reportshowed Friday, and the unemployment rate is relatively low. But that is happening despite a long-term trend of much lower growth, both in the United States and other advanced nations, than was evident for most of the post-World War II era.

This trend helps explain why incomes have risen so slowly since the turn of the century, especially for those who are not top earners. It is behind the cheap gasoline you put in the car and the ultralow interest rates you earn on your savings. It is crucial to understanding the rise of Donald J. Trump, Britain’s vote to leave the European Union, and the rise of populist movements across Europe.

This slow growth is not some new phenomenon, but rather the way it has been for 15 years and counting. In the United States, per-persongross domestic product rose by an average of 2.2 percent a year from 1947 through 2000 — but starting in 2001 has averaged only 0.9 percent. The economies of Western Europe and Japan have done worse than that.

What the article doesn't mention is that this might be linked to the increasing debt in the economy slowly dragging down growth as the rentiers demand an increasing share.

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As a kid (now in 50s) I remember thinking that growth cannot be infinite. So, if I could see this when I was about 10 or 11, how come the experts have not been able to send this and offer an alternative?

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If you hold certain assets such as property growth inflation has been phenomenal.

Zimbabwe didn't have amazing economic growth rates...

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As a kid (now in 50s) I remember thinking that growth cannot be infinite. So, if I could see this when I was about 10 or 11, how come the experts have not been able to send this and offer an alternative?

Not unless you increase the population, that is where we have been getting much of our growth over the last 30 odd years.....;)

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Not unless you increase the population, that is where we have been getting much of our growth over the last 30 odd years.....;)

Yeah but, sticking with my naive kid's PoV, there are finite resources available to feed, house etc. So at some point reality must meet with tptb wishful thinking. End days.

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Yeah but, sticking with my naive kid's PoV, there are finite resources available to feed, house etc. So at some point reality must meet with tptb wishful thinking. End days.

Yes they make it so difficult to grow your own food and build your own home.... surely if you encourage it you should also provide for it.;)

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Yeah but, sticking with my naive kid's PoV, there are finite resources available to feed, house etc. So at some point reality must meet with tptb wishful thinking. End days.

I posted this in another thread recently:

He runs the maths on population growth, and it's not pretty.

Edited by SpectrumFX

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http://www.nytimes.com/2016/08/07/upshot/were-in-a-low-growth-world-how-did-we-get-here.html?ref=business&_r=0

What the article doesn't mention is that this might be linked to the increasing debt in the economy slowly dragging down growth as the rentiers demand an increasing share.

Maybe an economy does lose dynamism when only a few are able to break the mould due to financial contraints. Money funnelled to the few means that many, many others who maybe could have made a significant impact in business/commerce but cannot get off the ground and running due to lack of excess income and debt.

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Was talking to someone today about world population........first of all we should not be trying to extend life, three score years and ten is the going rate... secondly there is enough for everyone in this world if only we could manage and share it correctly, what we have got at the moment is large chunks of the population with more than enough and even more with not enough......huge amount of waste along with desperate need.....

Those with the money and more than enough there is little growth in them.....those who would like to grow and have the potential do not have the money or resources to grow....stalemate.;)

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there is enough for everyone in this world if only we could manage and share it correctly

That will keep my laughing all the way to lunchtime.

What is your "correct" allocation of resources?

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Maybe an economy does lose dynamism when only a few are able to break the mould due to financial contraints. Money funnelled to the few means that many, many others who maybe could have made a significant impact in business/commerce but cannot get off the ground and running due to lack of excess income and debt.

See kindleberger economic primacy.

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That will keep my laughing all the way to lunchtime.

What is your "correct" allocation of resources?

Peace.....water, food, sanitation, a home and a job to do.....thousands have none of these things, giving people stuff is not the way to do it, give them the means to do it for themselves......the world is far from perfect so this will not happen, people far too busy trying to protect the things they already have...... ;)

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Nothing much has changed since 2008. Excessive private sector debt means that too great a share of economic output is still being captured by the financial sector. Hugely unproductive, effectively reducing the economic gain of the system to less than one.

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Nothing much has changed since 2008. Excessive private sector debt means that too great a share of economic output is still being captured by the financial sector. Hugely unproductive, effectively reducing the economic gain of the system to less than one.

Zombification.

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The point is the west doesnt need fast growth.It needs savings/capital creation invested in areas/emerging markets that can grow with finance capital to provide an income for a population with poor demographics.We spent it on houses and tat instead.Its incredible to think the US and the UK are printing to hand to people on welfare to buy foreign goods.The only thing the Chinese can buy with that paper is property here.

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If you hold certain assets such as property growth tax payer support has been phenomenal criminal

You're original state is ******** BTW. Look at the graph on the front page.

Most of the country would have been better off investing in turnips.

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As a kid (now in 50s) I remember thinking that growth cannot be infinite. So, if I could see this when I was about 10 or 11, how come the experts have not been able to send this and offer an alternative?

Economic growth is an economy's increase in output of goods and services. Sure, you hit resource constraints pretty quickly on the "goods" part of the equation. But services? And IP? OK, some aspects are directly proportional to population size (hairdressing, writing poetry, etc) but technology is a big multiplier of potential output of all forms. There's a long way to go before we've maxed out on the non-goods front.

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