From: "christian a. gregory" <gregoch at mail.auburn.edu> Date: Fri, 5 May 2000 14:38:10 -0500
Dennis Redmond wrote: "Per capita growth in this expansion has been pretty dismal, lower than the 1970s, the EU and Japan have grown about as quickly, while the US is $2 trillion in debt to the latter and must import $400 billion a year to keep itself afloat. But okay, Perry isn't an economist, we can forgive him for that. "
Hunh?
Real GDP growth Year Japan EU U.S. U.S. 1991 2.9 -- 0.85 1970 -.13 1992 0.4 2.0 4.01 1971 4.40 1993 1.0 -.8 2.54 1972 7.16 1994 0.4 2.4 4.07 1973 4.02 1995 2.3 2.1 2.15 1974 -2.14 1996 3.0 1.3 4.05 1975 2.58 1997 0.6 2.2 4.05 1976 4.56 1998 -2.0 2.7 4.60 1977 5.01 1999 -0.4 2.2 4.60 1978 6.55
1979 1.36
So, you think population changes in the U.S. would make these numbers look dismal? Why? And you consider double or triple average annual growth over the decade (US: 3.4; EU 1.7; Japan .9) makes growth "about equivalent" for the US, Japan and the EU? How so?
Besides, doesn't Anderson take into account the bubble and debt in the sentence you cite? "However inflated are asset values on Wall Street, burdened with debt private households, or large the current trade deficits, there is little doubt that the underlying competitive position of US business has been critically strengthened." No one will take pleasure (but also pain, given my employment status) when the bubble bursts more than I, but I'm not sure why you think the US deficit spells its downfall, anymore than Japan's current account surplus has done it much good in the past 10 years.
All best Christian