NEW YORK, April 25 (Xinhua) -- In the last few weeks international institutions and prominent economists have warned that the global economy, especially the U.S., is facing the prospect of lower growth -- not just a recession, but low growth for a decade or longer, reported Bloomberg on Monday.
"Some of it will be caused by an aging population, but we are also choosing policies that will hobble our economy," noted the report. "You might think this would raise alarm bells and growth would become a priority, but instead it's been met with a collective shrug -- or even a doubling down on low-growth policies."
It's stagnation, not inequality, that breeds discontent and populism, according to the report. "Growth is also our best solution to climate change because productivity-driven growth is how we use fewer resources to get more output."
Meanwhile, "as countries become richer there is a case to make that they can afford less risk, and certainly there are benefits to more stability. But policymakers today are leaning too far toward safety, losing sight of what we're giving up," the report said, adding "there is a viable movement demonizing growth."
"Growth increases when you add more people, capital or productivity to an economy. A shrinking and aging U.S. population means fewer workers and less output. We can partly compensate for this by raising productivity," according to the report.
