The Federal Reserve Bank of San Francisco examined the main factors that determine the US economic growth rate and concluded that
the new normal will below 2%. The slow growth rate is the result of slow growth in the labor force, a plateau in human capital growth caused by growth in higher education, and slow productivity growth. The report describes some of the tools that government might use to promote a higher growth rate but implementation would require a functioning government that was interested in governing. It is wishful thinking to believe that this will happen. Our current presidential election indicates how polarized the US has become as a nation.
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