Jun
04

Potential Problem

potential problems Despite being about to begin the seventh year of an economic recovery, GDP growth has averaged a lackluster 2.2% the entire time, profoundly lower than in previous recoveries. The reason, a combination of slow labor force growth, primarily due to an aging population, and virtually no labor productivity growth due to firms not investing in plant and equipment. If both these variables remain weak, GDP growth above 3% won’t happen.

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