Wednesday, August 17, 2016

Where Did The Growth Go?

West Hunter has published a graph showing declining increases in growth of GDP over the last couple of decades in the U.S., Europe and Japan:

(Source)
This ties in with other similar stories, such as The Atlantic's "Why Are American Workers Getting Less Productive?", and a report from Zero Hedge that "US Productivity Plunges For 3rd Quarter In A Row - Longest Losing Streak Since 1979."  The article from The Atlantic notes that "[t]he worker productivity rate is gauged by the output of goods and services produced for each hour worked." Or, more accurately, the value of the output of goods and services.

The short answer to the question where did all the growth go? is China and the Middle-East. Looking at the sudden declines in growth show that it matches up with the increased price of oil and the shift of production to China and other developing nations. Just follow the money--that is where the growth went.

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