Thursday, November 20, 2014

The Long-Term Path to Perma-Recession: Real Potential GDP Growth

Potential Output

In economics, potential output (also referred to as "natural gross domestic product") refers to the highest level of real Gross Domestic Product output that can be sustained over the long term.

Click to enlarge.

Can we reverse the trend? Absolutely.

I know we exponentially borrow from future generations so that present generations can buy more stuff and pack it into this country's many self-storage units. The decline persists in spite of that. I can understand your concern. It seems hopeless.

Is it really hopeless though? What if we parabolically borrow from future generations? Genius!

Sarcasm and hope: It's what's for breakfast. Hope

May not be warranted at this point.

Perhaps we should just stick with sarcasm then. Om nom nom nom nom nom!

Source Data:
St. Louis Fed: Real Potential GDP Growth

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