(Bloomberg Business) – There is a growing chorus of thoughtful economists of different backgrounds and different persuasions all coming to the same conclusion. The economy of America is permanently changing. Our future is one of lesser, subdued economic growth accompanied by starkly lower monthly employment gains.
Call it USsclerosis.
John Herrmann writes granular and detailed reports on interest rates and economics for Mitsubishi UFJ Securities. He worries about the here-and-immediate but also considers the America our children and grandchildren will know.
It will have elements of Eurosclerosis. The definition has changed over the years and from crisis-to-crisis, but the basic tone of a sclerotic Europe is of stuctural rigidities that limit growth and cause higher unemployment than need be. Eurosclerosis will come to America unless we boost immigration, increase our work force, enhance productivity, or find lightning in a bottle.(Lightning in a bottleis ascribed to the American philosophers, Benjamin Franklin or Leo Durocher; I can’t remember which).