The Six Headwinds to Growth in the USA

Posted on October 20, 2012


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 ]

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