An interesting piece in the New York Times discusses the possibility that the United States may never return to the rate of economic growth that existed for long periods of time before the recent recession.
Demographics are considered as the source of this detachment from long-term growth trends. Specifically, slower growth is related to declining rates of growth in the work force, and lower employment growth is tied to slower population growth and fewer women entering the labor market.
The low growth tied to demographics theory stands in contrast to those who believe the slow nature of the current economic recovery is due to the unusual characteristics and intensity of the recent recession.
Some economists believe that the more secular trends associated with demographics could mean that the United States has entered a period during which it will be very difficult to return to pre-recession economic growth levels.
Source: New York Times
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