NC State Ag Economist Dr Mike Walden – “Explaining Slow Economic Growth”
Mary: This is Mary Walden with economist MW welcoming you to the economic perspective. Today’s program looks at explaining slow economic growth. Mike, one of the distinguishing features of today’s economy is the relatively slow rate of economic improvement compared to previous periods in our history. One analysis argued today’s economy has been growing one-third slower than the post-World War II average. But I understand everyone doesn’t agree with this comparison. Why?
Mike: Summary Answer
- Point to several reasons why growth in earlier periods was faster
- 1950s and 60s: overhang from WW II; most of rest of developed world was devastated; US economy was only one left standing
- 1990s: start of technology revolution – initial boost to growth
- Early 2000s’: ill-fated housing boom
- Population also enters the equation – the nation is adding population at a much slower rate – this also slows growth
- So, a continuing debate over what is average
- I’m MW
Mary: And I’m Mary Walden for the North Carolina Cooperative Extension Service
