Wednesday, December 4, 2013
The Future Of Economic Growth
The recent discussions about secular stagnation has focused some attention on the causes of stagnation and whether it is permanent. Brad DeLong reviews several books which suggest that the period of steady economic growth are over and he gives his reasons for being more optimistic about the future. This is a long article that I will not attempt summarize. It is well worth the time that it will take to read and digest it. One of the things that I liked about DeLong's essay is that he redefines the relationship of growth based upon growth in GDP per capita, to growth in well being. The real purpose of an economy is to increase societal well being. That is more difficult to measure than growth in GDP but its interesting to see how DeLong has analyzed the difference between growth in GDP and growth in well being.