via Net Right Daily:
Dear U.S.: Grow, or die
Robert Romano | May 27, 2016
“[W]e are not going to get back to 3 percent [growth] with anything we know how to do now.”
That was former Congressional Budget Office director Douglas Elmendorf, ominously warning that the 15-year slowdown of the nation’s Gross Domestic Product (GDP) — wherein the economy has not grown above an inflation-adjusted 4 percent since 2000 and not above 3 percent since 2005 — is not ending anytime soon.
[…] it is the collapse of production inside the U.S., $8.7 trillion of trade deficits since 2000 and the slowdown of population growth of the working age population that have all been key contributors to the slow economy.
After all, if not through an expansion of output, an increase in labor force participation and consumption, and by running surpluses, where exactly did we expect more growth to come from? More productivity?
In other words, when it comes to economic growth, there is no replacement for, well, growth. Start making more stuff here, and selling it, and the economy will grow. People will find more jobs. Increased demand for labor will drive up incomes. That in turn will boost consumption.
Elmendorf is correct that we won’t get back to 3 percent growth any time soon. That is, not with the current wheelhouse of policy proposal typically considered by the two parties in Washington, D.C.
So long as the government stands in the way to growth, we should not expect any. Which is too bad, because at the rate the debt is growing, the U.S. needs to grow — or die.
Read the full article at Right Net Daily