The Six Headwinds to Growth in the USA

Posted on October 20, 2012

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The world is going to look completely different in the coming years as our economic growth based model shifts down by a couple of gears.  Here is a wonderfully written piece from Robert J Gordon: “Is US economic growth over? Faltering innovation confronts the six headwinds“.

Get ready for GDP of <1% as the United States (and the rest of the Western World) inevitably and inextricably move towards a Steady State Economy:

  • Headwind to Growth #1 – the massive shift downwards in hours worked per capita due to the baby boomer retirement
  • Headwind to Growth #2 – the lackluster educational attainment of the last 20 years, the knowledge base has peaked
  • Headwind to Growth #3 – rising inequality that is not good for the economy (even if one forgets the sickening morals)
  • Headwind to Growth #4 – continuing outsourcing and globalization will damage highest earning nations like the USA most
  • Headwind to Growth #5 – energy constraints and environmental limits. Enough said #Peakoil
  • Headwind to Growth #6 – government and personal debt overhang.

Check out the Full Article (and others) issued @ the Center for Economic Policy Research, or just click >  [ 6 headwinds.pdf ]

http://www.cepr.org/

The article also contains an astute assessment of the so called Industrial / Technical Revolutions since the 18th Century – providing evidence that nothing of real substance has happened for a long time

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