McKinsey: Consumer demand growth is critical for productivity and investment

Productivity. That's an all-important yardstick for measuring the value of goods and services workers can produce in any given time period. And growth in productivity is key in raising income and living standards. But, in the US, productivity growth has flagged in recent years. And that has economists worried. A recent study by consulting group McKinsey gives reason not to worry -- but only if the government supports policies that bolster consumer demand.
Secular stagnation
Here's the big issue: growth in the US economy has been sluggish since the end of the Great Financial Crisis. There have been spikes of growth. But invariably, the economy downshifted again. And the level of growth has been lower than in previous expansions.

In fact, there hasn't been a single calendar year in ...


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