Widdekind
Member
- Mar 26, 2012
- 813
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On average, in the US, over the past 60 years, prices (P) have risen half-a-dozen times; and the growth (%) of real output per capita (Q/N) has fallen a dozen times. During recessions, outputs do temporarily fall below trend, for a few years. But overall, every decade, the price-level has increased by +20 points; and the growth of output per capita has decreased by -1%. At that rate, per capita output will "stall out", and begin to decline, within about 5 years, i.e. by about the 2016 presidential election:
High prices, and slow growth, resembles poor African countries, suffering from lawlessness, wars, AIDS, and low savings rates. (For example, US consumers save very little, and spend allot, even "over-spending" on credit, so that more dollars are chasing the products they buy, so bidding up prices.)