The Perks of Being an Economist

Six reasons for American Slow Economic Growth

1. The U.S. money supply isn’t rising enough to fuel strong growth

2. The job market is dominated by temp and freelance/contract work.

3. Financial insecurity is rising.

4. Home values are still declining in much of the country.

5. Households have gone from borrowing freely against their home equity to paying down debt.

6. Local taxes will rise, reducing household income and spending.

Generally slower economic growth is a result of:

1) slower productivity growth;

2) higher unemployment or underemployment (involuntary);

3) slower population growth;

4) reduced labor force participation or hours worked.