Can the Developed World Grow Its Way Out of Stagnation?
If we borrow all of tomorrow’s prosperity to spend today, there won’t be any future prosperity, there will only be penury.
The developed nations share many of the same sources of stagnation:
1. Demographically, their cohort of retirees drawing government benefits is expanding with no end in sight while their workforces are shrinking;
2. Their models of funding government programs institutionalized 50, 60 or 70 years ago no longer provides enough income to cover government spending;
3. As their populations age, demand/consumption is stagnating as older people spend less on everything other than healthcare, and the cohort of younger people getting married and starting families is in steep decline;
4. Attempts to stimulate consumer spending via central bank/state stimulus are now increasing inflation, crimping both household and state spending as debt service costs rise;
5. Institutionalized processes that worked in the “boost phase” of economic growth are now hindrances as follo
Article from LewRockwell
LewRockwell.com is a libertarian website that publishes articles, essays, and blog posts advocating for minimal government, free markets, and individual liberty. The site was founded by Lew Rockwell, an American libertarian political commentator, activist, and former congressional staffer. The website often features content that is critical of mainstream politics, state intervention, and foreign policy, among other topics. It is a platform frequently used to disseminate Austrian economics, a school of economic thought that is popular among some libertarians.
