The Formula For Economic Growth | Intellections

Economic growth increases when more people work more productively. However, economic growth has slowed in the last decade, as increases in productivity and hours worked have fallen to fractions of their previous rates. Returning to rapid economic growth will require policies that encourage individuals to rejoin the workforce and businesses to invest in physical capital.
For more information, please visit the Policyed page here: www.policyed.o...
Additional resources:
John Taylor argues for policy reforms to promote economic growth in “Can We Restart The Recovery All Over Again?”: stanford.io/2tO... or bit.ly/2terZD3
In “Slow economic growth as a phase in a policy performance cycle,” John Taylor discusses the reasons and policies behind our poor economic performance: stanford.io/2rS...
Read “A Recovery Waiting to Be Liberated” by John Taylor to learn about the policies that can speed up our economic growth here: on.wsj.com/2sBwHYA
Watch John Taylor’s testimony before the Financial Services Committee concerning monetary policy here: bit.ly/2tOSiME
In an interview with Bloomberg's Kathleen Hays, John Taylor discusses the global financial instability and roles the central banks play: bloom.bg/2ttYiLl
Read “Getting Off Track: How Government Actions and Interventions Caused, Prolonged, and Worsened the Financial Crisis” by John B. Taylor to learn more about the 2007-2008 financial crisis here: hvr.co/2sUwfYf

[@CvnDqnrU]

If people are more time in their jobs doesn't mean they produce more.

he mean actually if any people join the workforce total hours gonna be increasing.

[@ramond.f4u212]

very fast growth economic: indonesia, india, china and vietnam

[@Caesar2k1]

The thing is, the economy is consumption driven, not investment driven. In fact, usually economic activity is pegged at about 70 consumption and 30 investment, and generally investors make investments into businesses if there are enough consumers for the goods or services that the businesses produces to make a profit. Virtually all individuals are consumers of goods and services, and most people pay for these things with money they earn at a job. Incomes of workers have stagnated since the 80s as a result of shifts in trade and business policies that no longer encouraged employers to pay workers based on economic growth like in the past. This also excludes the effects of automation where robots are increasingly doing the jobs once done by humans, usually better and for less then humans. Because of this, an increasing amount of people can't afford to be consumers beyond basic necessities.

[@john_doe_not_found]

The productivity decline can be attributed to offshoring to low cost labor centers. The amount of people over seas producing goods for slave level wages is in the 10s of millions.
As those jobs went over seas, mostly men were effected, as manufacturing tends to be a male dominated space. So you see several million able bodied men not working, because industry left them, not because they left industry.
If industry comes back and makes the investment and pays the wages, labor participation will come back. But the trust is shattered. In the 1940 - 1970s jobs for life were offered by many corporations, steel mills, auto plants, etc. They ripped that contract up in the 1980s and 90s. Trust needs to be re-established.

[@alparslankorkmaz2964]

Nicely explained.

[@keithcooper2012]

We live on a finite planet. Indefinite growth is impossible. Indefinite increase in productivity is impossible.

[@brianmoogo9552]

keep your green liberal thoughts to yourself the economic growth is possible indefinately

[@marwanserbout2592]

@@brianmoogo9552 how ? its a finite planet with finite resources with finite human wants and needs

[@SmokeyMountain0]

@@brianmoogo9552 liberals support free trade and capitalism bruh

[@emilhuseynov6121]

@@marwanserbout2592 is it perhaps possible that with technological advancement one day we will branch out from our planet and harness the resources of our universe. Maybe not now but in the long future and after that we can surely satisfy our resource needs.

[@johngreene8988]

Except wages have grown much slower than productivity.

[@tmurisi]

businessmen are becoming more greedy

[@MrEzman99]

Thanks Reagan!!!

[@820monster]

If we continued what Reagan started this country would be so much better off today.

[@spiriset8901]

Good

[@kaiylahjackson6680]

We cannot expect to Increasing the number of hours without increasing workers wages. Cost of living is too high and from pychological perspective laborers will experience burn out. Let common sense prevail.

[@knutkloster2003]

perhaps the economy slowed down because, oh i dont know know, anear economic depression. please stop lying to people by telling them to get a job when only 1 out 20 people are unemployed and by telling themto work hard dispite the fact that we are already working our damn near hardest.

[@NickWolfOakland]

Joseph Stalin It's easier for politicians to talk about 'bringing back jobs' & 'personal responsbility' instead of 'we have stabilized our jobs growth rate and unemployment is low, but these jobs are awful because I've helped these enterprises and industries fuck over the working class.'.....Right-libertarian legislators have convinced uneducated White Christians that government is intrinsically evil and that near-total deregulation of the free market is best for the populace, instead of governments actually advocating for trade unions and incentivizing corporations and other businesses with tax credits when they create long-term well-paying jobs with pensions.

[@yzeeww247]

Also remember there are trillions and trillions of idle cash because we in America at least incentive saving over production because the return on financial investment is so much higher then the return of production.

[@emmanuelameyaw9735]

To grow your economy, you need human capital and physical capital, which is common knowledge, even before John B Taylor was born. So why attribute this basic commonsense to him?

[@josephpostma1787]

We can start by lowering welfare payments.

[@alenpaul2523]

Exactly

[@jasonruggles4622]

excuses... money is stagnant. rich have all of the money. One of the reasons why Rome fell.

[@orppranator5230]

The reason why we are in a slowing economy is because it is becoming more and more socialist. Hint: the federal budget gives 2/3rds of its money to WELFARE SYSTEMS.

[@mohammadbuhamad7744]

Do you have evidence to back this up. Last i checked a lot of US Corporations are under great scrutiny for tax evasive practices