As I mentioned last week, I am on a winter break. So I haven’t been able to post over the past several days. But I have been following the news flow and wanted to make a few comments on what I am seeing regarding the US.
I believe wage and income growth are the only sustainable inputs that drive an economy’s growth over the long term. Declining interest rates, declining savings rates and debt accumulation can go a long way toward sustaining growth. But eventually interest rates and savings rates fall to zero and debt accumulation causes service costs to become more than wages and income can support.
Over the past thirty-odd years in the United States, wage and income growth has been stagnant (i.e. secular stagnation) but the economy has grown as interest rates and savings rates have de...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.