Economist Kocherlakota makes an important point:
“The Organization
for Economic Cooperation and Development pointed out recently that U.S. GDP has
expanded by more than 10 percent in inflation-adjusted terms since the end of
2007, while the euro area and Japan economy have stagnated.
It's important, however, to take account of population growth. The U.S. population is growing much faster than those of either Europe or Japan, so its economy should almost automatically grow faster as well. Yet what really matters for individuals is how much output per person has changed.”
It's important, however, to take account of population growth. The U.S. population is growing much faster than those of either Europe or Japan, so its economy should almost automatically grow faster as well. Yet what really matters for individuals is how much output per person has changed.”