- The economy can only grow as fast as productivity in the long term.
- U.S. real GDP growth has been around 2% in the last 8 years while productivity growth has lingered at 0.5%.
- Therefore, 75% of economic growth is under the influence of credit. Credit expansion is slowing down and turning negative.
What do you do when your neighbor, that you know makes the same amount of money as you do, buys a Porsche, puts a big pool in their garden, remodels and refurnishes their house, and throws big parties to brag about it? More →