Popular Myths and a Shrinking Work Force It’s not just voters who buy into popular myths. Many investors do too. Few have wider appeal than the myth that central banks can create economic growth via the printing press.
What central bankers and their supporters seem to forget is that growth comes from living, breathing human beings.
It often sounds a lot more complicated than it really is. But genuine economic growth comes from two things: the number of workers in the labor force and the productivity of those workers.
That’s a problem for the US. Because according to a recent report in The Economist, its potential labor force is set to grow at less than one-third the 0.9% rate we saw between 2003 and 2013.
This post was published at Acting-Man on November 28, 2014.
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