The leftists say the secular slowdown is caused by the growth in old-age dependency. That growth is peanuts compared to the growth of dependency on government.
The three biggest brakes on growth since LBJ have been the growth of debt (household and government), the growth in the number of people who get all their income from the taxpayer, and the growth of Federal regulation.
The Fed has given us huge amounts of cheap capital. The Dems have given us huge amounts of cheap labor. Land has not been destroyed or rationed.
Why should an economy slow down when it receives huge amounts of stimulus from labor and capital? Because the brake is stronger than the accelerator.
Shrink the scope and size of government and the private sector will rebound.
Absolutely. And yet it is impossible to shrink the government because anyone who even hints at the first doable steps in that direction is immediately vilified as a racist-sexist-bigot-heartless-fascist-hater and rendered unviable as a political force. Therefore, since the weight of debt is unsustainable and increasing the economy must and will implode. The result will be horrific suffering. And at the end of the tunnel the people may well turn to a draconian form of dictatorship to save the little they have left. But there is a chance that a lesson will have been learned: that worship of the state (an idolatry) must end in catastrophe.
Absolutely. And yet it is impossible to shrink the government because anyone who even hints at the first doable steps in that direction is immediately vilified as a racist-sexist-bigot-heartless-fascist-hater and rendered unviable as a political force. Therefore, since the weight of debt is unsustainable and increasing the economy must and will implode. The result will be horrific suffering. And at the end of the tunnel the people may well turn to a draconian form of dictatorship to save the little they have left. But there is a chance that a lesson will have been learned: that worship of the state (an idolatry) must end in catastrophe.
It's not that complicated...
Government has expanded more quickly since the 70's, and all western civilizations have experienced this. All productive economic growth comes from the private sector, which funds the government. As government grows and consumes more of the available resources, the private sector necessarily must give ground and grow more slowly.
Shrink the scope and size of government and the private sector will rebound.
Government has expanded more quickly since the 70's, and all western civilizations have experienced this. All productive economic growth comes from the private sector, which funds the government. As government grows and consumes more of the available resources, the private sector necessarily must give ground and grow more slowly.
Shrink the scope and size of government and the private sector will rebound.
http://pjmedia.com/blog/is-slow-economic-growth-the-new-normal/
plus more comments
WeMustResist