…a direction that inhibits growth. Of course, it could be the relationship between tax rates and future growth shown in the graph is a spurious correlation. But that is unlikely,…

…wage growth that is consistent with the Fed’s inflation target (2.0%) plus productivity growth (likely around 1.5%). While nominal wage growth is an important indicator for Fed policymakers to measure…

…savings was not a major factor dampening growth and/or creating a wedge between nominal income growth and real personal spending.. But if nominal income growth does continue to improve —…

…produce dismal economic growth. And dismal economic growth has consequences. Poor economic growth makes people worse off, and hits them in their pocketbook. And when people are hurting financially, their…

…Let me explain the difference between the hairshirts and the growth proponents. Remember that long-term productivity growth–which is our ultimate goal–is driven by three forces: Physical capital, human capital, and…

…of the 3.1% GDP growth rate was due to inventory growth. But obviously, GDP growth can not be sustained by inventory growth. Furthermore, such inventory growth suggests that businesses may…

…which the Club for Growth apparently does not get, is a reduction in the population growth rate and not a reduction in the productivity growth rate. And the Solow model…

…cost claims growth in 2013. According to Glen LaFollette and Louise Sheiner, healthcare in the US is sustainable at 1% growth and will not crowd out the other necessities. “An…

…tax rates and economic growth rate is positive. In other words, when tax rates are low, increasing the tax rates is associated with faster economic growth. As tax rates rise,…

A business cycle theory of labor force participation and wage growth I’ve devoted a lot of time and thought, and typed a lot of pixels of commentary, about wage growth…