8 Quotes Tagged: economic-growth

The world is entering a period of stagnation, the new mediocre. The end of growth and fragile, volatile economic conditions are now the sometimes silent background to all social and political debates...

A confluence of influences is behind the ignominious end of an era of unprecedented economic expansion. Since the early 1980's, economic activity and growth has been increasingly driven by financialisation - the replacement of industrial activity with financial trading, and increased levels of borrowing to finance consumption and investment. By 2007, US$5 of new debt was necessary to create an additional US$1 of American economic activity, a fivefold increase from the 1950s.... Ever-increasing amounts of debt now act as a brake on growth.

These financial problems are compounded by lower population growth and ageing populations; slower increases in productivity and innovation; looming shortages of critical resources, such as water, food and energy; and man-made climate change and extreme weather conditions. Slower growth in international trade and capital flows is another retardant. Emerging markets that have benefited from and, in recent times, supported growth are slowing. Rising inequality has an impact on economic activity.

While the changes that are necessary are actually simple, they're painful, and require courage and sacrifice. Living standards will decline in real terms. Citizens will have to save more and consume less. Working lives with lengthen. For many, retirement will be revert to being a luxury. Taxes and charges for government services will rise to match the cost of providing them. There has to be greater emphasis on the real economy - the creation and sale of goods and services. Financial institutions need to return to their actual role of supporting economic activity.

Obesity is a double victory for consumerism. Instead of eating little, which will lead to economic contraction, people eat too much and then buy diet products - contributing to economic growth twice over.

Both political parties have moved to the right during the neoliberal period. Today’s New Democrats are pretty much what used to be called “moderate Republicans.” The “political revolution” that Bernie Sanders called for, rightly, would not have greatly surprised Dwight Eisenhower.

The fate of the minimum wage illustrates what has been happening. Through the periods of high and egalitarian growth in the ‘50s and ‘60s, the minimum wage — which sets a floor for other wages — tracked productivity. That ended with the onset of neoliberal doctrine. Since then, the minimum wage has stagnated (in real value). Had it continued as before, it would probably be close to $20 per hour. Today, it is considered a political revolution to raise it to $15.

When learning is purposeful, creativity blossoms. When creativity blossoms, thinking emanates. When thinking emanates, knowledge is fully lit. When knowledge is lit, economy flourishes.

"The man who knows that nothing in demand is out of production soon expects that nothing produced can be out of demand. Not to go where one can go would be subversive. It would unmask as folly the assumption that every satisfied demand entails the discovery of an even greater unsatisfied one. Not to produce what is possible would expose the law of "rising expectations" as a euphemism for a growing frustration gap, which is the motor of a society built on the co-production of services and increased demand."

Commerce is a cure for the most destructive prejudices; for it is almost a general rule, that wherever we find agreeable manners, there commerce flourishes; and that wherever there is commerce, there we meet with agreeable manners.

I wish politicians the world over would stop claiming credit for economic growth that happens despite them, not because of them. Grow up...