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The World Economy Just Can’t Escape Its Low-Growth, Low-Inflation Rut

nytimes.com

101–102 of 102 posts

Re: The World Economy Just Can’t Escape Its Low-Growth, Low-Inflation Rut

#101

Earlier quoted context omitted.

The question of 'finite resources' comes up a lot when it comes to growth, and the question essentially betrays a lack of understanding of what growth is. We can definitely grow by 3% per year forever, it's easy if you first consider we don't need any real material change for that to happen - it could just mean the 'numbers on our money change' i.e. just inflation. But more likely, there will be material progress and…

Sorry, this is a bit of a pet peeve of mine when people argue that exponential economic growth can continue forever, which flies in the face of anything remotely resembling critical thought. It’s just so depressing that people are so in denial over basic features of reality. You know that bad things are about to happen when people can’t face reality.

"which flies in the face of anything remotely resembling critical thought. It’s just so depressing that people are so in denial over basic features of reality."

Stop attacking with ad hominem and address the argument -> there is absolutely nothing preventing perpetual growth. Nothing at all.

History has shown there to be consistent exponential rates of growth through long periods, and it's utterly reasonable to assume this will continue.

Re: The World Economy Just Can’t Escape Its Low-Growth, Low-Inflation Rut

#102

Earlier quoted context omitted.

If wages increases are less than GDP growth rate, the GNI must rise. The situation for the last 40 or so years.

The middle class income earners tend to have retirement accounts, don't they?

That would be one of the places wages are allocated after they are received. It is not relevant to take home pay.

And of course retirement saving are stunningly in adequate for the vast majority. Likely because anyone who wants to save has to compete with people who don't and will work for a lower salary.

It should also be noted that in the past, employees frequently received pensions which rival their take home in total value. And even though pensions have disappeared, wages remain flat.

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