Back to top

Intellections Discussion

Growth is Good: Why Slow Growth Can’t be the New Normal

Why has growth slowed down?


I covered this more in depth on the previous question, but in short it is excessive government regulation that is the biggest dead weight on the economy.

I think growth has slowed down to its natural rate in an advanced and mature economy. We cannot compare our growth rate to India or China because they started at a level of severe poverty and an uneducated and unskilled labor force. History shows that a growth rate of greater than 3% can only happen after severe events such as WWII when we were the economic engine of the world. We might have economic blips occur (internet) that give us a short term bump in growth. But it seems evident that 2% growth is a natural state long term.

Increase wealth and income inequality does not help economic growth as well.