About Me

My photo
This site is the inspiration of a former reporter/photographer for one of New England's largest daily newspapers and for various magazines. The intent is to direct readers to interesting political articles, and we urge you to visit the source sites. Any comments may be noted on site or directed to KarisChaf at gmail.

Tuesday, October 15, 2013

Government waste stifling growth worldwide -- By Richard Rahn, The Washington Times

(Illustration by Greg Groesch, The Washington Times)

Illustration by Greg Groesch for The Washington TimesBig bureacracies haven’t boosted employment or personal wealth 

The International Monetary Fund announced this past week that it expects world GDP growth to be only 2.9 percent this year. This is below the 3.2 percent in 2012, which was below the 30-year average of about 3.6 percent, and far below the one-of-the-best recent four-year periods, from 2004 to 2007, when it averaged 5.1 percent. The differences may seem small, but the rate of GDP growth determines how quickly global poverty declines and real incomes rise.

From the end of the recession in 2009, real economic growth in the United States has averaged less than 2 percent, which means that it will take around 35 years for real income to double. Contrast this performance with the last four years of President Clinton's administration and the four years under President Reagan after the end of the 1981-82 recession, when growth averaged more than 4 percent per year. If those rates had been sustained, real incomes would have doubled in a mere 17 years. The Chinese have been doubling real incomes about every seven years because their growth rates have been ranging between 7 percent and 12 percent per year.

Global economic growth was negative in 2009 because of the almost worldwide recession. It quickly bounced back to 5.2 percent in 2010 as would be expected — but the sharp decline in the past two years is disturbing. Coming off a recession, growth rates normally are higher than average for several years, but not this time.

(Click link below to read more)
READ MORE Sphere: Related Content

No comments:

Post a Comment