Gregory Mankiw: One Economic Sickness, Five Diagnoses

Economists, like physicians, sometimes confront a patient with an obvious problem but no obvious diagnosis. That is precisely the situation we face right now.

Let’s start with the problem.

There is no simple way to gauge an economy’s health. But if you had to choose just one statistic, it would be gross domestic product. Real G.D.P. measures the total income produced within an economy, adjusted for the overall level of prices.

Here is the sad fact: Over the last decade, the growth rate of real G.D.P. per person has averaged just 0.44 percent per year, compared with the historical norm of 2.0 percent. At a rate of 2.0 percent, incomes double every 35 years. At a rate of 0.44 percent, it takes about 160 years to double.

http://www.nytimes.com/2016/06/19/upshot/one-economic-sickness-five-diagnoses.html?_r=0

Gregory Mankiw: One Economic Sickness, Five Diagnoses

Gregory Mankiw: One Economic Sickness, Five Diagnoses

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