I keep meaning to post on this topic, but what with work and all, it’s been on the back burner. In any case, I wrote an article published in the Star last week that covers the main points (excerpt):
MOST people take growth for granted. We expect living standards to increase over time and that our children will enjoy a better quality of life than us.
But growth is not a given and it is driven by economic processes that can and do change. There has been a gradual slowing in global growth over the past couple of decades, and some of this can be pinned on structural factors that form the very foundation of growth itself....
It’s partly secular stagnation, but more in the Hansen sense than in Summers new formulation, and over a larger scope than just what’s going on in developed economies.
Have a read and let me know what you think in the comments.
Dear God, I dearly hope I’m wrong on this.