Friday, March 1, 2024

"Sustaining US Economic Growth" (2002)

Sustaining U.S. Economic Growth by J. Bradford DeLong, Claudia Goldin, and Lawrence F. Katz. July 2002


From the Introduction:

With rapid economic growth, social and economic problems become far less of a burden. A fast growing economy is a rich economy. A rich economy is one in which people have more options and better choices: the people can—through their individual private and collective public decisions—decide to consume more, lower tax rates, increase the scope of public education, take better care of the environment, strengthen national defense or accomplish any other goals they might choose. For an economist these are sufficient reasons to consider growth a good thing. A fast-growing economy is one in which people will have greater wealth, higher incomes, and more of the necessities, conveniences, and luxuries of life.

Moreover, in America at least, slow economic growth appears to heighten political gridlock, and thus reduce the quality of political decisions.

Consider that last part a prediction.

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