Joined: 28 Dec 2005
|Posted: Fri Oct 23, 2015 2:55 pm Post subject: U.S. Economy Since 2000
Larger economies tend to grow more slowly than smaller economies. Over the 1982-00 boom, per capita real GDP growth wasnt in decline, even with increasingly larger trade deficits, which subtracted from GDP growth.
There has been a slow demographic shift after 2000, which reduced per capita real GDP growth, along with even larger trade deficits and on top of huge GDP gains. However, the sudden and sharp downshift in per capita real GDP growth after 2007, along with smaller trade deficits, which add to GDP, cannot be explained by mostly demographics. It continues to be mostly a cyclical phenomenon.
Over the past eight years, U.S. per capita real GDP growth shouldve been several times stronger.
Total per capita real GDP growth over selected periods, since WW II.
July 47 to July 61: 28.3%
July 61 to July 70: 33.7%
July 70 to July 82: 22.2%
July 82 to July 90: 28.0%
July 90 to July 00: 24.0%
July 00 to July 07: 10.4%
July 07 to Apr 15: 3.2%
The U.S. offshored entire industries, while creating new industries, and consumed up to $800 billion a year more than produced in the global economy.
After 2007, that cycle of global growth has slowed substantially with the sharp slowdown of U.S. economic growth.